Reed Hasting, CEO at Netflix, participated of a conference in the Royal Television Society, in Cambridge, UK, and acknowledged that ‘a new world’ is coming from November, with the launch of OTTs from multiple competitors such as Disney (Disney+), Apple (Apple TV+) and NBC Universal (Peacock).
‘While we’ve been competing with many people in the last decade, it’s a whole new world starting in November. Between Apple and Disney launchings, and, of course, Amazon’s ramping up’, said Hastings, who also cited NBCUniversal’s coming Peacock service. ‘It will be tough competition. D2C customers will have a lot of choice’, he said, and has also dismissed concerns that a handful of digital media giants, including Netflix, would monopolize the TV market. “We win only about 5% of television viewing hours, so we’re nowhere near a concentration risk,” he expressed.
Hastings also warned that content production costs will increase with the arrival of Disney + and Apple TV +. “Someday ‘The Crown’ will look like a bargain’, said Netflix executive. Hastings warned that steadily rising production costs would climb even higher with the advent of the likes of Disney Plus and AppleTV Plus. In the UK, Netflix has spent a little more than USD 500 million over the past year and plans to increase the amount in 2020. He also reiterated that his company was not interested in buying production or post-production companies.