Who will win Netflix-Disney1

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Arizona State University *

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6356

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History

Date

Oct 30, 2023

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docx

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Uploaded by PrivateDugongMaster226

In today’s era when we think about the video-streaming space or we are excited to spend some entertainment screen time with ourselves, friends or family, our sub conscious mind has a very few options and this are nothing but giant market players such as Disney, Netflix, and Amazon prime video. After reading a case in brief and knowing all the facts, I believe that Bob Iger a CEO of the Walt Disney Company have a compelling formula for success, after having made so many right decisions during his tenure as chief executive officer, Disney’s model of multiple subscription services would make the Disney more popular and profitable in next 5 years. Walt Disney has a very old history, founded on October 16, 1923. Walt Disney and his brother Roy found the Disney Brothers Cartoon Studio in Hollywood, California. The Studio now known as the Walt Disney Company. Whereas Netflix founded in August 1997 by Reed Hastings and Marc Randolph. Netflix started as a distributer of DVDs by mail, Initially Netflix was in high demand due to not charging late fees to consumers on DVD rental. It later switched to a monthly subscription fee that came with unlimited rentals. Going through the Journey of Disney and Netflix business parameters, their journey has many great numbers and partners. Bob Iger became president and chief operating officer in 2000 and CEO of in 2005. The company’s market capitalization value increased from $46 billion to more than $230 billion in 2019.During this period company made several significant acquisitions of computer -animation studio Pixar in 2006 for $7.4 billion, Marvel Entertainment, which had its roots in comic books in 2009 for $4 billion, filmmaker George Lucas Lucasfilm in 2012 for $4.05 billion and most recently 21 st century Fox in March 2019 for $71.3 billion. On the other hand,

Netflix in its 2002, approached to (Blockbuster with 7700 stores and millions of customers) one of the video rental giants to brand Netflix’s name and sell 49% stake in Netflix for $50 million. Netflix’s proposed technology was still couple years away from being market ready. Netflix was losing money with revenue 0.2 billion and subscribers 2 million. Blockbuster declined the offer and Netflix continued without a partner. Netflix filed its IPO in 2002, the company delivered its one billionth DVD in early 2007, it had 70,000 DVD titles in its catalog. With this Netflix launched its streaming services, broadcast and cable networks had tied up rights for as long as nine years. On content licensing deals – Disney had licensed its content to technology companies such as it contributed episodes of several of its hit shows when Apple released its video iPod in 2005, allowing users to buy individual episodes from the Apple iTunes Store for a couple of dollars. When Apple announced its online movie service, the lineup included over 75 of Disney’s movies with “Disney Movies Anywhere” that allowed user’s to purchased from any of the 450 titles from digital locker from their one central location. Whereas Netflix’s catalog

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