With the announcement Disney will start its own streaming service to the ever populated on-demand global television market.
The worth of Netflix is currently $10 billion more than Disney's $152 billion valuation. With these huge numbers it is surprising that Netflix is currently $8 billion in debt, but the urge to produce new content is the ever increasing pressure on television streaming companies and production companies alike.
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The concern within the business world is the fact that Disney is a global household name and its products like Tom and Jerry, and films like the LucasFilms acquired Star Wars franchise and then you have the superhero films such as X-Men, Captain America, Iron Man and Ant Man under the Marvel Studios brand, you really have a strong hand in the television and film market.
Netflix will have to get some very high quality and top production in producing television and film content that can compete with Disney on a longterm basis. Only time will tell whether Netflix can substain such creative endeavours, or burn into the ground with borrowing too much money from investment banks.
Disney CEO Bob Igor has stated that Disney has a good relationship with Netflix, but the time has come to reap the rewards by going alone and removing Disney content from Netflix at the end of 2018. The Marvel TV series like Daredevil, Agents of S.H.I.E.L.D, as well as Spiderman and Iron Man animation content will remain on Netflix.
It will be interesting how Netflix will cope next year in 2019, and how Disney fairs in the following years, whether it will be successful or not.
Furthermore, early this year Spotify lost a copyright infringement case with song publishers and will have to pay for back-royalities, which will set the company back £85 million.
Currently Spotify isn't profitable but generates revenue of £4.5 billion per year and is valued at £20 billion - having recently floated on the New York Stock Exchange (NYSE). Spotify has a healthy status amongst its investors who see Spotify as a worthwhile company to keep supporting.
Spotify hasn't released the number of users it hopes to attract, but we'll have to wait for at least 3 months until Spotify starts to release this information.