Disney prepares to launch Disney+, AT&T/Time Warner works to launch their own streaming service very soon and now even people are paying for such streaming services than to the cable companies, and NBC Universal starts making one, Netflix is put into a position. As more companies start their own services, they will pull their content from services like Netflix. This forces Netflix to make their own content which in turn results in higher prices, so they are increasing their subscription charges.
The real hard situation is that if all the companies mentioned earlier pull their content, Ampere Analysis (via CB) says that Netflix will lose about 20% of its content library. And that is a lot. Especially thinking that many people keep Netflix so that they can re-watch some of their favorite shows that aren’t Netflix Originals.
Of course, there is the chance that Netflix will be able to keep some of the content from these companies by paying more, much like it did for Friends, but once again, those costs have to be paid by us, the consumers of the service.
