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New entrants intensifying competition in SVOD market: Influx of services could pose problem for Netflix

The rise in services available will intensify rivalry for licenses of existing movies and TV shows, making original content increasingly commercially significant. Apple TV Plus will be solely centered on original content, demonstrating the growing importance of it in the market. Apple has a reported $6bn budget for the streaming platform, giving the company a means to attract Hollywood stars. Disney Plus has been designed as the new exclusive home of blockbusters produced by Disney Studios, Pixar, Star Wars and Marvel. This will take numerous titles away from Netflix. It will also provide original content, with series The Mandalorian the most anticipated. HBO Max will launch with 31 original series, which combined with current HBO exclusives amounts to 69 shows.

Apple and Disney have both priced services aggressively at $5 and $6.99 respectively, undercutting Netflix’s most popular offering of $13 a month. Netflix does offer a cheaper option of $9 a month but this only permits streaming on one device at a time and in standard definition. Disney Plus includes streaming on four devices and access to 4K content in the stated price. Disney Plus had over 10 million subscriptions – three times more than projected – on the day of its launch. HBO Max will be priced at $14.99 a month representing a more lucrative package. The 34 million U.S. subscribers that already subscribe to HBO, through the cable service or HBO Now, will have free access to HBO Max. Apple has given consumers of an iPhone, iPad, Apple TV, iPod touch or Mac since September 10th 2019 a free yearly subscription to Apple TV Plus. The SVOD platform is also included in the Apple Music student package.

Netflix is still the market leader and has the most diverse offering, attracting over 160 million subscribers. The firm currently outspends its competitors for content paying $15bn annually. Netflix still reaps the benefits of first mover advantage and brand recognition which will enable it to remain a vital part of the average consumer’s streaming package. The sudden influx of players is currently unlikely to dent Netflix subscriptions severely.