Disney has a ‘major advantage’ in the streaming war: RBC Capital
On the subject of competition, the tech expert said there was likely room for both Netflix and Disney in the streaming market.
“I think there’s actually also room in the market for Disney to succeed,” Mahaney said.
Even as Disney laid out its goal of reaching 60 to 90 million subscribers within five years, Netflix is “on track” to having more than 300 million members globally by that point, he said, adding that there’s room for both services to reach those scales.
“We did our survey work here, we think the vast majority of consumers are perfectly willing to sign up for more than one service,” he said. More than 70 percent of respondents in the RBC survey indicated they were willing to sign up for two or more platforms, he added.
“If you’ve got (a) good product out there, especially if people shave back the overall (pay TV) bundle, we think they’ll buy both Netflix and possibly Disney,” Mahaney said.
Beyond Disney’s impending entry into the streaming space, other companies such as NBCUniversal and AT&T have also announced their intentions to launch similar services in the coming months.
— CNBC’s Lora Kolodny contributed to this report.
Disclosure: NBCUniversal is the parent company of CNBC.