…the data we are getting on “the streaming wars” are not about war or zero-sum; rather, I would argue they are about which companies are savvy enough to understand the marketing required to drive scale in those channels where it finds product-channel fit. Rankings like the chart above tell us which ones are figuring that out, and how well they are succeeding with product-channel fit, nothing more.
Netflix continues to win the game because it has solved for near-ubiquitous product-channel fit. No one else is coming close to its model, or its marketing economics.
(NOTE: This argument that there are no “streaming wars” got booed on Twitter).
I was going to build on it for this mailing, and then Disney announced a major streamlining of its media and entertainment businesses. Fortunately, this reorganization is laser-focused on building Disney’s streaming business around product channel fit.
The optics of the move make sense – Disney’s understanding of “product channel fit’ has been fundamentally redefined by OTT streaming. But, in justifiably pursuing a more agile distribution strategy Disney is also adding complexity to its ecosystem for monetizing IP, and it is not clear whether or how executives have been properly incentivized for managing and navigating these changes.