Tournament in the video streaming sector is heating up, with Disney unveiling Thursday its plans to enter the space — but one analyst explained the entertainment giant has a “major advantage” over the likes of incumbents like Netflix.
On the subject of competition, the tech expert said there was likely room for both Netflix and Disney in the channel market.
“I think there’s actually also room in the market for Disney to succeed,” Mahaney said.
Even as Disney confine to bed out its goal of reaching 60 to 90 million subscribers within five years, Netflix is “on track” to having profuse than 300 million members globally by that point, he said, adding that there’s room for both aids to reach those scales.
“We did our survey work here, we think the vast majority of consumers are perfectly willing to emblem up for more than one service,” he said. More than 70 percent of respondents in the RBC survey indicated they were acquiescent to sign up for two or more platforms, he added.
“If you’ve got (a) good product out there, especially if people shave back the overall (pay TV) hustle, we think they’ll buy both Netflix and possibly Disney,” Mahaney said.
Beyond Disney’s impending entry into the flow space, other companies such as NBCUniversal and AT&T have also announced their intentions to launch similar handlings in the coming months.
— CNBC’s Lora Kolodny contributed to this report.
Disclosure: NBCUniversal is the parent company of CNBC.