Do SVOD Market Changes Threaten Netflix, Hulu, and Amazon?
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Read the complete transcript of this clip:
Jim Long: Providing VOD services for content is not exactly rocket science. So if I own Friends, boy, you better believe I would be the one that wanted to provide it because there's no real need necessarily. You can also license it to Netflix too. I believe you make consumer choices that we're out of the cable bundle era. We're now in the consumer choice era. What do you do? You make Diet Pepsi available in every darn store in America, right? So you do the same thing if you own Friends and by all means, you put it in your own app. So I think that's totally predictable.
Obviously, Netflix felt empowered enough to start doing their own programming, competing against their suppliers. So they're trying to change the game. I think everything that's happening is the right thing and I think it's really good for consumers and it remains to be seen how interesting Hulu and Netflix will be in the future for their vast libraries but I wouldn't count them out or anything.
Rob Dillon: Excellent. Josette.
Josette Bonte: I do believe that there is going to be some market share attrition for companies like Netflix, Hulu, and even for Amazon Prime. However, I don't think any of these three are particularly in jeopardy and that's for different reasons on a case-by-case basis.
So Netflix has had a tentacular reach overseas which makes it strong. Its reliance on original content makes it super-strong as well. So I think Netflix is certainly okay although it will suffer some competition. Amazon Prime is actually totally subsidized as you know, by Amazon's formidable retail empire, so it's here to stay.
As far as Hulu is concerned, now that it's 100 percent owned by the Walt Disney Company, I believe that there is going to be room for it to be either folded in Disney+ or perhaps more likely, be bundled with Disney+ so it will continue to exist I believe, as an entity.
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