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How will Netflix respond, fare following Disney announcement?

People familiar with the adage, "What doesn't kill you will make you stronger" might reasonably think that it commands relevance presently to the somewhat squirmish situation that massive subscription company Netflix finds itself in.

And that is this: The Walt Disney Company, which has long supplied Netflix with highly popular movies pursuant to various licensing agreements, announced last week that it intends to stop doing so in 2019.

And that, notes a recent media report on the described "dramatic move," is "a shot across the bow" that could have flatly huge consequences for Netflix.

Then again, though, the news could ultimately be regarded as a real yawner, given that Netflix does not rely solely on Disney offerings to pad its bottom line. The aforementioned article published in the Hollywood Reporter last Wednesday duly notes that Netflix also develops its own content (the House of Cards is a Netlix creation, for example), and will undoubtedly increase the effort to do so now, in the wake of Disney's move.

Moreover, stresses one industry analyst, Disney's pulling of the plug on its own licensed creations "will not impact [Netflix'] service until the second half of 2019," which should give company time to develop a sound response.

The impetus to do so is certainly strong, and Netflix is an entity that has proven to be a smart and resilient player in the entertainment industry. Reportedly, the company has an estimated market value of about $74 billion, with lots of cash around that can go toward the development and marketing of originally owned material.

And, on top of that, there's this: Disney's move only impacts Netflix operations in the U.S. market. The company also has a strong presence with subscribers globally.

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