Mexico. When we talk about the consumption of audiovisual content, the increasingly important role played by new technologies is undeniable. Today, according to inegi's ENDUTIH, 78.1% of Mexican Internet users obtain some proportion of their content through the Internet.
In this sense, paid Over-The-Top (OTT) platforms have been configured into important players in the ecosystem which compete and represent a competition for traditional platforms.
While it is possible to find a significant number of OTT platforms owned by different groups, Netflix has managed to consolidate itself during the last few years as a dominant player in the segment. In Mexico, for example, this company concentrates 80% of subscriptions, according to The Competitive Intelligence Unit. However, this scenario could soon change and accommodate a new and strong competitor.
That new player is none other than Disney. The company, which has recently stood out in the media for acquiring Fox and major entertainment franchises, announced last week the launch of its own paid OTT platform, Disney+.
The arrival of this giant to the OTT market will be an attractive phenomenon to observe, so it will be important to pay attention to the modifications in the competitive dynamics of video on demand services that its arrival will bring.
This makes sense when taking into account that the price with which Disney Plus will enter the American market will be $ 6.99 dollars per month, a price that includes the transmission of video in 4K. While a subscription to Netflix's 4K service reaches $15.99 per month in that market.
At the same time, the content offer is very aggressive. Although Netflix will continue to have a significant advantage in terms of the extension of its library, Disney's original content suggests a great attraction for the consumer. Among them, the inclusion of the 30 seasons of The Simpsons, flagship films of Pixar, Marvel, the Star Wars saga, National Geographic and, of course, the Disney classics.
Such has been the relevance of the offer presented by Disney that, although it will be available in the United States until November 12 of this year, it has already caused a stir in the financial world. Proof of this is that, on the day of the revelation of the new platform, Disney shares closed at a level 11.5% higher than that registered at the opening of the day and those of Netflix fell 4.5%.
It is necessary to remember that the characteristics of the business, strongly influenced by content licensing and device compatibility, make it difficult for Disney's entry to mean a sudden loss of Netflix subscriptions, however, the new offer will bring interesting repercussions in an increasingly relevant segment for consumers.
Text written by Gonzalo Rojon of The Competitive Intelligence Unit, CIU.
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