Calculating Netflix profitability over the short term is hard because it’s difficult to value the residuals from their IP. If for example stranger things is still being watched in 20 years that’s less content they then need to pay for over time.
I don’t think they are creating a lot of valuable content right now. But, that’s more option than fact.
Disney has a lot of depth in their library, but are unlikely to drastically reduce DVD/Blueray/etc sales by including the full thing. Meanwhile customers are going to be disappointed unless they have full access to their entire catalog for a very low monthly fee.
They may leverage the thing to surpass Netflix’s 150 million customer base. But, it’s far from a forgone conclusion at this point.
Disney has a lot of preexisting deals that they are waiting to expire. But they have said that as deals expire, they will be bringing everything to Disney+.
During an investors’ meeting, Disney CEO Bob Iger claimed that every single movie in the Disney catalog will arrive on Disney Plus “at some point fairly soon after launch.” Previously, Disney only released its most popular animated films on home video on a limited-time basis in order to make them feel more special. However, the so-called Disney “vault” is going to vanish when Disney Plus arrives.
I don’t think they are creating a lot of valuable content right now. But, that’s more option than fact.