The Enduring Myth of “Streaming Forever” | Why Content is Disappearing from Major Platforms

Streaming was once perceived as a digital library of movies and TV shows that would last forever. However, as media companies strive for profitability, popular platforms like Disney+ and Hulu are removing content, leaving subscribers to face a new reality.

Consumers have grown accustomed to Netflix’s evolving catalog as Hollywood studios launched their own streaming services and transferred proprietary content to their platforms. Even when Warner Bros. Discovery removed content for tax write-offs tied to its merger, consumers seemed to accept it as a cost of doing business.

But as Disney prepares to pull dozens of shows and films from Disney+ and Hulu, including “Willow,” “The Mighty Ducks: Game Changers,” and “The Mysterious Benedict Society,” subscribers are reevaluating their expectations.

The digital streaming industry experienced rapid growth during the pandemic, fueled by lockdowns and an influx of new content. However, as the sector cools, Wall Street has shifted its focus from subscriber numbers to profitability. This change was triggered by Netflix reporting its first subscriber loss in a decade last year.

Analyst Michael Nathanson of SVB MoffettNathanson explains that the removal of content from streaming platforms is a way to avoid residual payments and licensing fees. Warner Bros. Discovery and Disney are cutting expenses by removing content made specifically for streaming rather than licensed shows and movies.

This strategy has saved Warner Bros. Discovery “tens of millions of dollars,” according to CNBC. Disney+ and Hulu are following suit, although they are being strategic about which content stays and which goes. Major hits like “Peacemaker” on Max and “The Mandalorian” on Disney+ are unlikely to be removed.

Meanwhile, underperforming shows and films could be on the chopping block. Data from Parrot Analytics reveals that the demand for the dozens of shows and movies being cut from Disney+ represented only 1.9% of the total Disney+ catalog in the first quarter of the year. Hulu’s removed titles accounted for just 0.4% of demand on the streaming service.

Content removed from streaming platforms is not lost forever. Warner Bros. Discovery began licensing content to Fox Corp.’s Tubi and Roku, which are free, ad-supported streaming television platforms (FAST), after cutting programs from Max. This move opened up a new source of revenue for the content.

As media companies increasingly turn to advertising strategies to make streaming profitable, consumers like Matt Cartelli from New York state’s Hudson Valley believe that “nothing is guaranteed to remain on streaming forever.” Cartelli suggests that streaming services are a convenient way to watch content, but are not a replacement for buying movies or TV shows on home video.