The Growth of Streaming and the Effect that the Pandemic has Had
- besociety
- Aug 8
- 3 min read
Updated: Nov 21
Over the last few years, we have seen the number of streaming services grow significantly. Where Netflix once stood alone, dominating online film and television streaming, it has been challenged by the likes of Disney+ and many other streaming platforms. This article discusses the increase in competition in the industry, the biggest threats to Netflix’s dominance, and the factors driving the move towards online streaming.
As we all know, Netflix is an online streaming platform; however, when it first started, it was a DVD postal service that aimed to rival Blockbuster in video/DVD rentals. Founder Reed Hastings was frustrated by Blockbuster’s late fees and sought an alternative. The catch with Netflix was that, instead of going to your local Blockbuster, finding they did not have the film you wanted, or dealing with dreaded late fees, you could do it all online and have films delivered to you for a monthly subscription. Over time, Netflix’s model became more popular, and they began to impact Blockbuster significantly. In 2000, they even offered themselves for sale to Blockbuster for $50 million. Blockbuster rejected this offer, a huge mistake, as Netflix went on to dominate the market. As of today, there is only one Blockbuster store left in Oregon.
In 2007, Netflix shifted from a mail service to an online streaming service, making all films available to watch at subscribers’ fingertips—a truly revolutionary way to consume film and television entertainment, with unlimited re-runs of favourite shows without the need for a physical copy. For years, Netflix was the only serious player in online streaming, offering a large library of entertainment at a relatively low price. They had even begun producing their own exclusive TV shows and films, the first being House of Cards. Now, however, their dominance is being challenged by other online services such as Disney+, Prime Video, Hulu, and more.
One of the biggest threats to Netflix is Disney+. Launched in November 2019, Disney+ offers every Disney-owned TV show and film, including major franchises such as Marvel and Star Wars. This gives Disney a competitive advantage, as Netflix often has to rotate its catalogue of licensed content. This inconsistency means subscribers using Netflix for specific shows may switch to another streaming service to continue watching. An example of this is when The Office left Netflix USA after the licensing agreement ended in 2020. The rights reverted to the parent company NBCUniversal and were placed on their streaming service, Peacock. This affected Netflix, as The Office was one of their most-watched titles. Its departure contributed to Peacock reaching 33 million subscribers in Q4 2020.
Similarly, Disney has removed Marvel superhero shows previously branded as Netflix originals, including Daredevil, Iron Fist, and The Punisher. Although these shows were produced in collaboration with Netflix, the rights remained with Marvel Studios. When licensing agreements expired in 2022, Disney moved the content to Disney+, demonstrating Netflix’s vulnerability to competitors reclaiming popular content.
The move to online streaming has been accelerated by several factors, particularly the COVID-19 lockdowns. With cinemas closed, people were unable to watch new-release films in theatres, forcing businesses to explore alternative revenue streams. Film production companies responded by launching their own streaming services. Paramount, for example, launched Paramount+ mid-pandemic, releasing films on the service 30 days after their cinematic release—reducing box-office run times compared with the pre-pandemic standard of 40–50 days. Universal has made similar arrangements with cinemas, removing films after just 17 days. These changes show how the pandemic forced film producers to adapt by creating streaming services to maintain competitiveness and profitability.
In conclusion, after Netflix revolutionised the market by overtaking Blockbuster with its online and mail model, it has dominated the streaming industry since 2007. However, the pandemic has accelerated the creation of streaming services by film production companies, resulting in popular titles being removed from Netflix as licensing agreements expire. Additionally, the pandemic has shortened the theatrical window for new releases, affecting Netflix’s ability to secure exclusive content before it moves to streaming platforms.
Written by – Charlotte Craven
Position – Education Secretary
Comments