Netflix’s eventual loss of an entire library of Disney classics, live action films and television stunned viewers this week, but the streaming service is modeling their next moves after the Disney company and hoping to attain growth in the years to come.
Disney has long been known for acquiring rights to materials that they then use to create unique and original content, including the Star Wars studio, Lucasfilms, Pixar and Marvel. Disney used these assets mostly wisely, creating blockbuster movies, theme park rides and television programs – and millions of toys and licensed products as well.
Netflix’s recent acquisitions seem to follow the Disney model, just as the streaming business’s association with the entertainment giant reaches its end.
The Disney Company and Netflix struck a deal for streaming rights in 2012, when many Netflix customers were still using the DVD service instead of streaming content. In many ways, Netflix only began to benefit from the deal in 2016 when in-demand films from the Disney, Pixar and Lucasfilms libraries began to appear on the service. Moana, Rogue One and a host of older animated films drew subscribers to Netflix in 2017, but those films will be leaving as Disney launches its own competing streaming service in 2019. Netflix stock took off after that initial deal was struck; the brand is making moves now to prepare for the eventual loss of the Disney library.
With a huge library of animation, television programs and live action movies, the move to creating a branded streaming channel is a natural progression for Disney. If you are a Netflix subscriber, you won’t lose your Disney films right away; they’ll be available through the end of 2019, until the Disney launch.
As Netflix copes with the blow of losing some of the choice films in their library, they have begun to emulate Disney in many ways; acquiring properties and producing their own materials.
According to Motley Fool, Netflix recently purchased an entire comic book library of characters and stories. In buying the rights to Millarworld, Netflix now has access to the works of Mark Millar, a powerful name in the world of comic books. You may not recognize Millar’s name or face, but some of his comics have already been made into huge blockbusters, including The Avengers, Logan and Captain America: Civil War.
Through this purchase, Netflix has the ability to create long-form television shows and films based on some of the most popular comic book characters today. Often hailed as a modern-day Stan Lee, Millar’s other properties included Kick-Ass, Kingsman, Reborn and The Avengers. By harnessing this creative powerhouse, Netflix hopes to take its place as a leader in the entertainment industry, right next to Disney.
Netflix has already made a mark with original content, with fan favorites Stranger Things and A Series of Unfortunate Events. Both critics and fans also hailed the streaming services original content from the Marvel universe, which include programs about Jessica Jones, Luke Cage and Daredevil. The new acquisition allows Netflix to take things a step further and create more original programming around Millar’s universes.
Netflix is on track to spend about $6 billion on programming in 2017; the latest acquisition ensures they have plenty of fresh content. Netflix has taken more than just the idea of licensing from Disney – they are exploring ways to promote and merchandise their new properties as well.
The company has already begun, hiring a merchandising and promotion manager to launch a line of toys, clothing, books and collectibles showcasing some of the most popular original shows. Netflix could potentially follow the Disney model, creating a vast library of original content and making money not just from films, but from merchandising as well.
With over 10 billion in revenues in the last year alone, Netflix’s latest acquisition seems to be indicative of the brands venture into Disney-like territory, even as Disney makes plans to sever ties. While the streaming service has no plans at this time for a theme park, the acquisition of more super-hero and comic material means anything is possible for this growing brand.
Regards,
Ethan Warrick
Editor
Wealth Authority
