Bob Iger, the former CEO of Disney, released a statement in 2015, saying that it was his company that was making Netflix so successful. The realization then led to them acquiring 20th Century Fox and it also gave them the encouragement needed to launch their own streaming service, Disney+. Today, Disney is going head-to-head with their old ally, but the arrangement they had prior has given Netflix a huge headstart.
Bob Iger has said that Disney was licensing their movies to Netflix in the early days, helping them to build their platform with content, off the back of their creations. He said that they deserve a lot of credit and that they did do a brilliant job of meeting customer demand, but if it wasn’t for Disney, their success might not have been as prominent. Bob Iger said that one day, he woke up and realized that they were now directly in competition for stories and for talent. He came to the conclusion that he had been selling nuclear weaponry to a third-world country, and now they have decided to use it against them.
That is why Disney made the decision to stop licensing movies and content to Netflix, and to instead, develop their own platform so that they could compete in this ever-changing digital world. When Disney stopped licensing movies to Netflix, they experienced a huge dip in revenue, but the decisions that they made helped them to be a thriving force in the media world today. Disney is now a fierce competitor and has adapted well to the current market.