In 2019, two streaming giants faced off in what would become the most significant entertainment battle of the decade. Disney+ launched, pulling its entire empire from Netflix, taking with it Marvel, Star Wars, and Pixar – the cultural touchstones that defined generations. For Netflix, this was a massive blow. However, their response didn’t just help them stay competitive, it transformed the ways we consume media forever.
Netflix had dominated the streaming space for years , with hits like Stranger Things, The Crown, and House of Cards leading the charge. Their reign was unchallenged until 2017, when Disney shook up the industry by announcing the end of their licensing deal with Netflix. This wasn’t merely a business move; it marked a cultural shift. Losing Marvel, Start Wars, and Pixar wasn’t just a minor setback – it meant Netflix would no longer have the properties that audiences were most attached to.
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When Disney+ launched in November 2019, it came out swinging. For $6.99 a month – less than half the price of Netflix plan – Disney+ offered over 500 movies and 7,500 TV episodes, attracting 10 million subscribers within just a few days. Netflix now found itself in a position where it had to react, or risk losing its status as the king of streaming.
Instead of trying to compete with Disney+ on their nostalgic turf, Netflix chose to play different game. Their response was brilliantly calculated, focusing on three key areas that would set them apart.
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First, Netflix invested billions in creating original content. In 2019 alone, they released 371 original original titles, catering to every audience segment imaginable. From dramas to comedies, thrillers to documentaries, Netflix was determined to have something for everyone. This wasn’t random – every show was strategically designed to build loyalty and attract new subscribers.
Second, Netflix expanded its reach globally. While Disney+ focused on American audiences, Netflix took a different approach, creating hits for international markets. Series like Money Heist from Spain, Kingdom from Korea, and Dark from Germany struck a chord with viewers around the globe. By 2020, Germany international subscribers accounted for 60% of Netflix’s user base, transforming it into a genuinely global streaming service.
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Third, Netflix embraced cutting-edge technology. Their algorithm-based recommendations simplified the process for users to find new content that matched their preferences. However, the real game changer was Black Mirror: Bandersnatch – a choose-your-own adventure film that blended streaming with gaming. This daring move expanded the possibilities of streaming, drawing even more attention to the platform.
As Disney+ introduced a bundled offer with Hulu and ESPN+, Netflix countered by securing deals with prominent creators like Shonda Rimes, Ryan Murphy, and Martin Scorsese, ensuring exclusive content that appealed to a diverse audience. While Disney+ made headlines with the Mandalorian and the breakout character of Baby Yoda, Netflix responded with Tiger King – a viral sensation that captured global conversations during the pandemic.
It became clear that it wasn’t just about the shows anymore; it was about crafting cultural moments that united people. Netflix and Disney+ were not merely vying for viewers; they were competing for cultural significance.
Their release strategies showcased two distinct philosophies. Netflix promoted the binge-watch model, allowing viewers to enjoy entire seasons at their own pace. In contrast, Disney+ opted for a different approach.
