By John Ballowe

Since the refusal of Blockbuster to buy out Netflix in 2000 for $50 million, streaming services have slowly grown to become the moguls of the entertainment industry. 20 years later, there is one Blockbuster open in Bend, Oregon, and the company had to file for bankruptcy in 2010. Netflix, meanwhile, is a multi-billion-dollar entertainment juggernaut.

With the creation of Game of Thrones and other cinematic TV series on premium channels, streaming companies have slowly taken over the business. HBO, Starz, Netflix, Showtime, and other providers have created their own brands, with original shows whose quality far outweighs the competitors on cable and network TV. Gone are the days where someone can sit on their couch and turn on a network TV show as intricate or in-depth as Game of Thrones, Peaky Blinders, Black Sails, or Ray Donavan. This new era of television attracts more and more consumers to streaming companies every day. 

Streaming TV will eventually take over all cable. With the creation of Disney+ and ESPN+, they have monopolized every part of television they have the rights to. These companies have taken all of their TV shows, movies, and other entertainment and put them into their own service, making it so other companies cannot provide them. In addition, HBO, ABC, and CBS are coming out with their own new streaming services in the coming months, all of which will monopolize their own shows and programs, leaving companies like Netflix to create more original content. It has come to the point where many households no longer pay for cable, having “cut the cord.” These households do not see the value of having 500 extra channels, when all they do is watch college football and premium TV. That is where these streaming services come in. They offer subscription-based content to their customers at a monthly or yearly rate and usually have high budget films, as well as high-quality TV shows.

In the last few weeks, COVID-19 has caused the world to slow down drastically. For the first time since World War II, many sports have been postponed, restaurants are only open for takeout and delivery, and many public places for leisure are closed. With this, these streaming companies are directly affected.

Entertainment conglomerate Disney has been hit the hardest, with the economy on a downward spiral. Their multiplatform reach, with streaming, theme parks, and other endeavors, makes them the most susceptible to this change in life. The closure of their theme parks is expected to result in losses of two billion dollars if they continue to be closed for 30+ days. In response, Disney has begun to release movies early on Disney+ to try and gather more viewers, but revenue losses are inevitable.

With all of this turmoil going on right now, it would seem to be a perfect opportunity for Netflix to make money, with most people practicing social distancing inside. This may not be the case. Netflix has 61 million current US subscribers out of a population of 327.2 million, meaning almost one in every five people in the United States has a Netflix account. This means that they are already generating revenue from the United States, with or without the virus, and their US viewership is not likely to grow because of this situation, because everyone who would have gotten Netflix most likely already has it. For the company to grow, it has to develop internationally and gather traction in Europe and Asia, something that looks bleak at the moment, with the growing restrictions put in place across the Far East. With people not being able to work, they might become more fiscally conservative during this time and not spend $10 per month on a Netflix subscription they don’t need. This would halt Netflix’s plans for progress for 2020.

Unlike Netflix, Hulu secured a contract with ABC to provide subscribers with news coverage through the app. This was implemented in March of 2020 to help those who have “cut the cord” still receive updates on the coronavirus and other news. Providing news through their streaming service hopefully adds another level of diversity for the company to stand out and grow their following.

COVID-19 has caused most of the United States to practice social distancing, This means that there are no large group gatherings, and certainly no movie theaters. Hollywood production companies are estimated to lose 20 billion dollars due to the postponement of new films being released. Many streaming services have tried to get ahead of this by releasing original films onto their sites early, like Disney+ with Frozen II. While this may help tide viewers over for a short period of time, new shows and movies are not being filmed, meaning all shows and movies set to release in the future have been pushed back. Even after the country begins to return to normalcy, the media industry will still be recovering. With Hollywood movies already postponed to the fall and TV shows not being filmed right now, with possible release dates later this year, it is inevitable that the media industry will lose money as a whole.

Currently, ESPN + gives subscribers access to their entire 30 for 30 library, as well as reruns of some of the great sports contests from the past. If you’re able, I recommend watching Brian and the Boz, The U, Parts One and Two, and The Best That Never Was. On Netflix, I recommend watching All-American, Peaky Blinders, or start The Office, if you haven’t already. If you want binge-worthy shows on HBO, Game of Thrones, Deadwood, and Chernobyl are all fantastic picks. Finally, on Starz, Black Sails, Outlander, and Power are all excellent.

The next few months are shaping out to be very strange and different, and thankfully these companies are going to be restocking their libraries periodically as we all shelter in place.

Featured image credit: AP Photo/Tony Avelar.

ALSO READ: Izzy Whitaker on what else we’re binge-watching.