Netflix & Disney’s Biggest Strategy Mistake
Evidenced in one visual - Weekend Wrap Up Edition - Week 5/2025
Sometimes, a single visual speaks volume and this week’s visual highlights Netflix & Disney’s biggest strategic advertising misstep. Want proof? Streamers’ ad businesses made their mark on the French market in 2024 but there’s a clear winner.
Plenty to unpack this week so let’s dive in.
🇬🇧 SVOD Penetration
BARB released its latest Establishment Survey showing a slight decrease of UK SVOD penetration (68.3% vs 68.8% QoQ). Here’s Netflix & Disney’s biggest strategy mistake evidenced in one visual.
🤑 Streamers Ad Businesses Grabbed 8%
of the French Video Display market in 2024 (+312% YoY) while Broadcasters’ streaming efforts snatched 28% (+33% YoY) and AVOD platforms 51% (+16% YoY). Prime Video is said to represent 2/3rd of the Streamer segment (97M€), YouTube 90% of the AVOD segment (621M€).
📉 Budget Cuts Threatening French PSM
The French Public Service Media Groups operate without a license fee model since 2022 which means that they are now very much dependent on the budget allocated to them by the French Government. For 2025, it’s a 80M€ budget cut they’ll face plus the elimination of 69M€ in transformation credits despite being number 1 in TV (France Télévisions’ market share in 2024 = 29%) and in Radio (France Inter registered a record-breaking audience of 7.5M listeners). The new normal for European PSM if/when they abandon the license fee model?
📺 Pay TV x Free Streaming
I’ve been banging that drum for 2 years. Thing is, it’s not so easy to move your entire infrastructure to integrate an IP-only stream, capable to dynamically inserting ads, on a range of old and new set top boxes. French Telco Free is doing it with their own and operated Movie free streaming channel 🙌.
🏴 Free TV x SVOD
No one has to stay in its lane (broadcaster, streamer) and that’s in every viewer’s interest as evidenced by the latest STV x Premier Sports partnership announcement.
⏩ Are We In Such A Hurry?
That YouTube feels like we need this feature. Fine if you’re watching unscripted content but won’t you miss out on the plot of a scripted show with this?
🇳🇱 Combine More, Get More
or “Combivoordeel” in Dutch (yes Streaming Made Easy helps you learn Dutch, you can thank me later 😉).
1.3M+ KPN customers who combine fixed and mobile services are getting Netflix or ESPN Complete as a "gift".
With this move, KPN boosts its loyalty program with a point system. The more services/products you take with them, the more points you gain, the more benefits. With Level 1, you get Netflix with ads at 8.99€ or ESPN Complete (14.99€) or 1Password plus mobile and TV benefits. Go to Level 2 (and beyond), then you will also get maximum flexibility to choose an add-on that you can change month to month (e.g. Disney to watch the Bear then HBO Max for House of the dragon; here comes more serial churners).
When I read news like this, my 1st question is always for how long is this “gift”? How long are customers locked in for (2 years)? How much do I end up spending? Will existing subscribers unsubscribe from their D2C streaming services to re-subscribe to get it?
I have more questions than answers and as a customer of a KPN competitor, I don’t want to go through the headache of changing everything. This begs the question: is this the future of bundling to retain but not necessarily to acquire new subs?
That’s it for today but before you go, tell me:
Enjoy your day and see you on Tuesday for a Deep Dive edition of Streaming Made Easy Premium.
