The Streaming Wars Reach the Living Room

Disney stopped accepting Netflix ads across its entertainment networks. Matt Britton saw a dispute that reached well beyond the commercial break. In this October 2019 CNBC segment, he examines the competition to control the streaming experience.

He frames the move as part of television’s convergence with digital platforms. Viewers increasingly expected the screen in the living room to behave like another connected device, with easy access to services and content.

Netflix had strong original programming, but Matt questions how that position compared with the broader resources of Apple and Amazon. Apple brought device integration; Amazon combined video with Prime’s shipping and commerce benefits. Those relationships could matter to retention as consumers faced more subscriptions.

Hardware is a particular focus. Matt describes the “last mile” of distribution as a potential advantage: the physical device, software and operating system through which a household watches. He considers whether acquiring or subsidizing television hardware could give a platform a more durable place in the home.

Roku’s presence in televisions illustrates the importance of that layer. Matt also discusses Apple, Amazon and Microsoft’s Xbox as businesses with connections across devices, distribution or services.

His outlook at the time anticipated an aggressive period of competition followed by consolidation and bundling. He questions how Disney’s strength in content would translate into running a technology platform.

The segment looks at the business around the shows. Content brings people in; the wider household relationship may influence where they stay.