Disney makes billions from licensing its content for streaming on the third-party platforms. However, now it’s clear that Disney wants a bigger share of the OTT streaming pie. The company has already announced they are going to launch their own streaming platform and would be reaching directly to the consumers now.
As per CEO Bob Iger’s words, Disney has been in a “good relationship” with Netflix, but it’s time to exercise an option and have a dedicated platform for or content.
It’s still 173 Days for the launch of Disney’s official OTT subscription platform, but it’s already in trends. A buzz was there since before 2017, but things went official with Disney announcing their launch in the upcoming November 2019.
The officially named Disney+ streaming service is in direct collision with the likes of Netflix, Amazon Prime, and Hulu. However, as Netflix is the biggest of the giants with over 140 million premium subscribers worldwide, it is believed that we would be seeing a direct face-off between the two.
How Netflix is a tough nut to crack for Disney?
Netflix is as far the biggest giant in the OTT streaming services. With over 140 million subscribers, its way ahead of its biggest competitor Amazon Prime, which has only around 20 million subscribers. In such a market, if Disney has made its mind, of course, it’s going to start with a bang.
The first thing that comes to the mind is the pricing comparison. While Netflix’s cheapest plan in the US starts from $8.99/month, Disney plans to grab the audience with cut-rate $6.99/month. The price difference of $2 is significant, and Disney is clearly a winner in term of price.
We must also note that Netflix is exhibiting quite a different strategy for the developed countries like the US, while it’s also aiming contrarily at the developing countries, which are growing fast in terms of adoption of the OTT streaming services. Recently, Netflix has been testing a mobile-only plan in India for as low as 250 Rupees/month ($3.6).
However, there is this other side where Netflix raised its cheapest plan’s price from $7.99 to $8.99 in the US. Disney is watching this and probably has a plan to capture first the US market and then worldwide. It has to come up with some extremely competitive pricing if it’s even thoughtful about the global market.
Clearly, as of now, Disney is winning the war of pricing, but still, it’s too early to say anything prior to the launch. Netflix has also been testing some way cheaper weekly plans separately for cross-platform streaming and mobile-only streaming. It is not going to give up on the pricing that easily.
Price is not the only Contemplation for Winning this Combat
Of course, everyone wants cheaper prices, but that does not mean they are going to compromise on the content. Nobody would stick to a platform if there is no value for money in the returns. Cheaper prices won’t help much if there are no shows or content that everyone would like to watch.
Currently, Netflix is a giant repository of over 5,500 titles, which includes TV shows, Web series, Netflix Original Series, Labeled movies, Netflix Original movies, Documentaries and much more. Disney+ would have to come up with quite a competitive catalog right from the first day.
If you have been a Disney’s label fan, you would know, it’s going to be a bang with some awesome Disney owned titles in the catalog. Take movies like The Lion King, Star Wars, Marvel movies, and shows like The Simpsons for the starter. Netflix is full of a very huge list of Disney’s properties. It’s going to be a tough job for the giant after Disney pulls out all of its proprietary content from all other platforms, which actively includes Netflix, Amazon Prime, and Hulu.
Though Netflix has been making a space with its originals, without Marvel, Disney, Fox, and Pixar, it will lose a significant amount of content to its direct competitor. That also means, Netflix has to come up with more originals, and billions would be spent on creating exclusive content.
Same also goes to the Disney, as old content might give them a head-start, but they would not help Disney carry on for the extended period. Eventually, people will want to see originals from Disney too; Content which they cannot find anywhere, not even in the theaters.
Disney has a Plan for the Content
Disney knows the market and admits it’s going to be a long battle before they can actually start receiving the profits. They admit that the service will not aim for the profit up until 2024 and will continue to operate in the loss until then. It will invest in content creation and providing cheaper plans so that they acquire the market first before heading for the profit generation.
Disney owns the major labels and franchises like Disney movies, Star Wars, Fox entertainment, and Pixar. It has plans to keep most of these content exclusive to the Disney+ platform while allowing some of them to be streamed on other platforms including Netflix. By pulling the exclusive content itself, Disney will lose over $300 million annual revenue, which comes directly by selling streaming rights.
In addition to exclusive streaming of Disney movies, Star Wars, Marvel movies, Disney has a pact with Hulu for allowing its content on the platform. Especially, the content from 21st Century Fox, which is now a property of Disney, but it was already a major shareholder of Hulu. Moreover, it also owns the live streaming platform, ESPN+, which is a dedicated and popular live sports streaming platform. So, we can also speculate that Disney might offer its streaming platform with a discounted bundle of Hulu and ESPN+.
Well, you can’t expect anything lesser from a multi-billion company and they can even afford to operate in the loss. With such a commitment, it’s going to be a rigid competition for Netflix to walk toe-to-toe with Disney. Nevertheless, Disney’s announcement to take the OTT streaming platform market by the storm has indeed created a ripple effect.
If nothing, we are certainly going to see aggression in the pricing plans and content quality in the upcoming time. The imminent giant owns most of the content labels, a majority share in a popular OTT platform (Hulu), and a well-known sports Live Streaming Software (ESPN+). Disney will target your whole family from kids and adults to sports lovers.
As per the exclusive Disney originals are concerned, they have already announced a few of the popular titles. Be it the adaptation of well-known kid’s book Timmy Failure, comedy shows like Noelle, Action packages like Lady and the Tramp, it’s a huge catalog to choose from. Disney is also planning to oversee the Star Wars series named Mandalorian with the first day of the launch. In addition, they have also planned a Return of the Jedi spin-off.
Can Netflix be a Competitor for Disney+?
As there is already an ongoing battle between Netflix, Hulu, and Amazon Prime, Disney might just win on the content with most, while loose on price with some. However, content is the king, and people would not pay even pennies if the content is not up to the mark.
In all this, original content plays a significant role, which has become a new standard of quality. Netflix has already won hearts with its originals and so did Amazon Prime. Having exclusive content like House of Cards, Stranger things, and The Umbrella Academy, Netflix shines in the competition.
However, with Disney joining the race, Netflix would lose some of its best performing shows like Jessica Jones, Luke Cage, or the Iron Fist. To tackle with each other, both the giants will have to spend billions on more originals.
Disney might win this war with most of the popular franchises in its trunk. I mean, who would not want to see a standalone or combined Marvel’s Black Widow, Vision, or Scarlet Witch series. While Disney is a mainstream media production house moving slowly to the streaming world, Netflix is doing right the opposite. It’s transitioning from a Streaming service to a full-fledged production house.
Finally, it’s hard to tell if Disney is becoming Netflix or Netflix is growing into Disney, but it’s certain that viewers are going to have a great time. As per the exclusive rights of the content are concerned, we can be certain that Disney will not make any deal with Netflix, Otherwise, they might just end up killing their own platform with their own content.
Undoubtedly, the kind of reach an audio visual content gives in a short time is incomparable with any other content format. Videos are easier to remember, and anyone watching a video can grasp information more readily than reading lengthy textual content. That’ why we remember every scene in the movies we see days ago but forget what was written in a textbook that we read a day ago.
Videos are everywhere. From marketing, entertainment, to online learning, they have made an inseparable connection with the audience and so do the popular video platforms. Who doesn’t know YouTube, Netflix, Vimeo, or Hulu?
Out of all the popular video platforms, YouTube has a very special category with over 1.8 million monthly users. This platform is neither different from Netflix or Hulu, nor it is the same in many senses. Just open YouTube and see if there is a single niche that YouTube does not cover. The particular platform has everything to attract the audience, brands, businesses, creators, advertisers, and probably aliens from Mars as well.
Why YouTube is so special? Is it a great idea to start a video sharing platform like YouTube in 2019? A videos sharing platform like YouTube, which gets over 1 billion hours of watch time daily has to be a special one.
To understand that, we have to consider the trends associated with video content format, video sharing platforms, video content creators, and the businesses that rely on videos for marketing and brand education. Below are 8 reasons why a videos sharing platform like YouTube is a sagacious businesses idea in 2019.
1. The popularity of on-demand video content
The growth and acceptance of YouTube by the masses are because of the video and acceptance of Video content format by the same mass. Today, the VOD content has a worldwide market of over $30.5 billion and it is expected to grow over $37.4 billion by 2023. As compared to 2018, there has been an upsurge of 4.7% in the total number of worldwide consumers of VOD content. It’s 1,773.3 million with a penetration rate of 24.1% to be exact.
When something is in such great demand and is being accepted insanely by the masses, it takes no time to deduce that just YouTube, Netflix, Hulu, or Amazon prime are not enough to cater the demands. The market has got enough space for many more VOD platforms that can cater to worldwide consumers.
In short, the main content format on YouTube, VOD, is itself a great content format capable of attracting the entire globe. A platform like YouTube would definitely be a great idea for VOD content publication.
2. Acceptance of live gameplays streaming
Live streaming on YouTube is still an infant feature, which they introduced in 2016. Within a very short span of time, the particular video content format penetrated the masses like a virus. As a result, the year of 2016 recorded an upsurge and 81% of the entire internet was seen watching more live videos as compared to 2015.
Today, live streaming has become one of the major content formats on the video-sharing platforms that support both VOD and Live content. Out of all kinds of live content on video sharing platforms, breaking NEWS makes the most with 56%, where events and concerts make up 43%.
In all this, a new genre of live video gameplays is flourishing. YouTube and Twitch are the most popular platforms to watch live video games. It does not mean, a new platform with the same niche cannot make a good profit. For your knowledge, even Facebook and Vimeo have started streaming live gameplay. At any time, You would find millions of people watching games on YouTube and Twitch.
Not just that, new platforms like IGTV of Instagram and Nimo TV are gradually grabbing a fair share of viewership. Twitch has grown to become a multi-billion company in just the gaming niche. You should know that the majority of the viewers in the live gaming niche are the millennials. There is no better businesses idea than offering live gaming on your video sharing platform today.
3. Growing fame in label-less video production
YouTube allows general users to create channels, build audience-base through free channel subscriptions, and share video content with anyone on the platform. YouTube is not just any platform but a social media network that uses video to connect. When one-third of the internet is watching videos, there could be a no better option to connect them.
That’s where a platform like YouTube gives equal opportunities for everyone to create, share content, and become famous within a massive community. We have seen YouTube-base creators making it to the mainstream media after the grown fame.
The platform gives an ability to create independent content without relying on a label. You don’t have to be a video production company to upload videos on YouTube. This public availability of the platform is the biggest reason for its success. It is a perfect inspiration for building a similar platform that offers a similar level of access to everyone. If you still doubt, gaming is not a good niche to start your platform, be advised that 5 out of the top ten YouTube stars in 2018 are gamers.
4. Recognition of video marketing and Video Ads
When something is as big a YouTube and the majority of the internet is available on it, it’s obvious that it would attract marketers and Advertisers. The major section of revenue for YouTube comes through ads only. It offers various types of Ads that get immense traction.
It uses both banner Ads and video ads to maximize the chance of a conversion. It also uses special Ads combined with both Banner and video-based targeting. Just check out the following Ads from YouTube, you would comprehend the kind of Ads you need to incorporate on your own video sharing platform like YouTube.
There are mainly two types of Ads which are further customized to fit into various scenarios -YouTube Banner Ads and YouTube video Ads. Here are few of the Ad customizations, which will give your own video sharing platform better ways to make money:
In-roll Video Ads (Only Videos) :
YouTube Hybrid Ads (Banner Video + Top Banner):
YouTube Hybrid Ad (In-roll video Ad + Embedded Banner)
Today, YouTube has doubled the number of Ads it shows. This single revenue model is making trillions for the company. Marketers are being attracted to video Ads as even they know that video is the future. More brands and companies these days have separate plans for video advertising. It’s a perfect time, to launch your video sharing site like YouTube, and claim the massive Ad revenue.
5. Escalation of brand collaboration with creators
Brands are taking a keen interest in the independent creators on YouTube and other video sharing platforms like Twitch, Nimo TV, Vimeo, Daily Motion, etc. They know these creators have some massive follower’s base and they can influence their buying decisions.
The same influence can also be used to promote a certain brand, which encourages businesses to connect with as many famous creators. These famous independent creators have a much stronger hold on their audience, and they have actually proven useful to the brands. As a result, more and more brands are connecting with them.
This upsurge in the connection with brands through paid partnership, collaboration, and sponsorship is encouraging new creators to join the league. In short, the entire mechanism is boosting the growth of video creation as a career and the need for more video sharing platforms in different niches.
6. Evolution of web development technologies
One of the major factors that make a website like YouTube an accessible business idea is the grown ease of website development. With technologies like clone scripts, the entrepreneurs today don’t need to develop the websites from scratch.
The clone scripts have eliminated the need for re-inventing the wheel by offering ready-made websites and other applications. With this readiness, the clone scripts cost 100 times lesser than the development from scratch.
If you want to develop the complete suite of YouTube-like website, it would cost you around, $100,000, about, 6 months, and a team of at least 10 experts on various technologies. On the other hand, a typical clone script comes priced as low as $500 for the website and $1500 for the whole suite with mobile apps. Moreover, it takes only a few hours to set up your platform using the clone script.
Today, you don’t have to ask anyone how to set up a website like YouTube. You can simply purchase a YouTube clone script and set it up according to your needs. The best YouTube clones come as open-source code and with self-hosting capabilities. They give you complete control over your platform across all the channels.
I have explained how YouTube works, how it earns, and how you can develop a similar website like YouTube with all revenue channels intact. Having said that, YouTube’s Revenue model is also a big reason for its success, and it is still a perfect model to start your own YouTube-like site.
7. The popularity of Hybrid video revenue model
YouTube uses its Hybrid Revenue model to make money. You already know it uses Ads, but there are some more channels that make a significant share of YouTube’s total earnings. So if, you think you can run a business like YouTube, including the following three revenue model is a must-
Ad Revenue: We saw back in the previous points the kind of ads YouTube uses. So it shares the Ad revenue with the creators.
Subscription Revenue: YouTube also runs subscription plans to make extra revenue. What’s special is it uses two types of subscription revenue. One is from the users to use the platform without seeing any Ads. While other is channel wise subscription for creators, where their subscribers purchase their memberships to support their favorite creator.
Transaction Revenue: in addition to the free Ad-based and premium subscription-based content, YouTube also offers some extra-premium content. These are separate individual paid content. It lets users pay only for what they want to watch if they don’t want to subscribe to the premium plan on YouTube Red.
The hybrid model is a whole in itself. It incorporates the positive aspects of all popular revenue channels and makes a balanced use to attract every kind of user. This is one of the top reasons for YouTube’s success in all age group, nations, and kind of consumers.
We have seen many new platforms becoming successful with this same model. For example, twitch. There is both free and premium content on Twitch.
8. YouTube is growing sterner to make money
Started with a controversy erupted after Logan Paul’s infamous dead body filming incident, YouTube took a bitter turn post removing the creators from its Preferred ad program. Google made it clear that it’s not going to monetize every other content on YouTube, and from now on, it would be going to be tough to make money. It introduced stricter monetization policies, which made many creators lose their already acquired monetized status.
In short, YouTube is no more as accessible for creators as it used to be. This has made many creators looking for alternative ways to make money. While few of the biggest creators have started their own video streaming platforms, many are still looking for new platforms to extend their income.
In all this, your own YouTube-like website might come as an advantage, and there is a higher chance that it would gain some enjoyable traction with a correct approach.
To Conclude: It’s a Huge Market
You might ask if YouTube is already this popular, how your site would compete with it to get traction.
Here is the thing. You don’t have to and you should not compete with YouTube. The online market for video streaming is full of various other platforms as well. However, still, they are making some great profit. For example, despite the fact that gaming on YouTube is also quite popular, Twitch is still performing exceptionally well.
Key is not competing with the giants but offering what they are not offering. Don’t be YouTube, be what it’s not. Even YouTube has an array of drawbacks if you look carefully. You can capitalize on these drawbacks and devise and unique business plan. For example:
If monetization on YouTube has become strict, you offer a more flexible monetization.
If YouTube lacks a niche, you start a platform in a particular niche. Example, cooking, art, etc.
If YouTube is full of various Fake and unethical content, you can offer a more curated platform.
If YouTube is too big to track everything, you start with a small platform first.
There are business opportunities in the drawbacks of your biggest inspiration. You just have to identify your own set of opportunities and offer a platform that addresses them. Users today are not limited to entertainment alone. There are infinite niches to focus on and cater to the consumers. If you still think, you can’t survive when YouTube is already there, think how Netflix, Amazon, Hulu, BHO, and others are co-surviving. Pick a niche, build your site, and start uploading today. Our YouTube Clone script will get the website development part covered for you.
Sports is honored with a ceaseless furor among the fans. From club soccer, cricket, rugby, baseball to chess matches, fans dependably purchase tickets to their preferred games. It is one such circle which has never observed a decrease in the income.
Every day, new games are being added to the broadcast rundown, and TV channels are communicating live games from a variety of genres. Nowadays, the furor for games has gone up in the sky with live streaming services broadcasting games straightforwardly to mobile apps and internet browsers.
Increasingly, the live sports streaming software have also gone extremely accessible with each day new streaming app joining the league with others like Hulu, Twitch, and YouTube Live.
How profitable are sports live streaming?
In a bustling life where a large portion of the general population don’t get time to watch their preferred teams playing on the TV, live streaming applications enable them to take a look regardless of where they are.
You can figure the notoriety of online live sports streaming by the fact that a critical populace in the US inclines toward watching games on Smart TV Apps or mobile apps regardless they can still watch the same on the traditional TV channels. It has occurred because of the growing popularity of live TV apps like Hulu, which enable clients to stream TV content through the web. As a result, there has been a decline in the market of traditional TV broadcasting as Apps like Hulu are offering the same in addition to extra benefits.
Just think of it in this way. Traditional TV channels are still being broadcasted in 480P, 720 P, and 1080i. Where platforms like Netflix, Hulu and Amazon Prime are offering the content in 4K quality. Today, users take OTT streaming as a perfect alternative to cable TV. In return, they get access to all the Cable TV content bundled with extra stuff like on-demand Movies, Web series, Live Sports streaming, and Originals.
One more factor that makes live sports streaming more popular is the grown penetration of internet in the developing and developed nations. The same has also helped new business joining the league and building new live streaming platforms with easily accessible Live Sports Streaming Software solutions in the market.
What’s the best way to monetize a sports streaming service?
Tickets. They have always been an effective way to monetize any sports event. People love watching live games and for that, they purchase tickets to the events. A sports streaming software can be built with a similar monetization model, where users can purchase the streaming for a particular sports event. We call it a Pay-Per-View (PPV) model.
The idea of PPV is exactly the same as selling tickets. You can set a price and ask users to purchase the stream in the same way you ask them to purchase the stadium tickets. Many of the live sports streaming software solutions come inbuilt with the PPV monetization model. You just have to look carefully to find a sports streaming software like StreamNow, which comes inbuilt with PPV and many other monetization channels. PPV is amazingly easy to set up with StreamHash and you can bundle it with others as well, for example, PPV with Ads or PPV with Subscription packages.
The future of live sports streaming is already bright. Check out this infographic to learn more amazing facts about sports streaming as a business that you perhaps didn’t know: