system
Given the following post, respond as if you're commenting on Reddit:
human
CMV: I think it's totally fine that other companies want to start their own streaming service and think that it encourages competition and prevents monopolies.

In light of the recent Disney announcement that they want to launch their own streaming service, I am very surprised that redditors seem to be upset by it. I love Netflix, but if Disney wants to offer their own streaming service to host their content, then that should encourage Netflix to develop it's own originals that might attract Disney audiences and/or prevent Netflix from price gouging because consumers now have options.

Second, isn't this what people wanted from cable companies? The ability to pick and choose channels that they wanted and only pay for what they want to watch? Netflix as it is is very cheap compared to a cable subscription. It's superb value. Combined with Hulu it's only around $20/mo and you get plenty of options. The cheapest I can get cable is $29.99 and that is only if I bundle that with 2 other services that also cost $29.99 each, and that does not include premium channels like HBO.

Related but not part of my original view, people threatening to pirate if Disney does this. Why is that okay with so many redditors?
gpt
The ideal situation for consumers is to have a low cost one stop shop for all entertainment content. If there are multiple streaming services, the incentive is to have one amazing piece of content that gets people to subscribe, and a ton of low quality filler. If there are three good tv shows each year and you have to subscribe to three different streaming services for each, then we are back to the cable model: One good show to get you to subscribe and a ton of garbage.

We are already at a point where a person needs Amazon, Netflix, HBO Go, and Hulu to get the full online TV experience. Now we are adding Disney. That's $50/month compared to $10/month for Netflix.

Competition is good to the extent that it encourages higher quality content, but the incentive in the online streaming service system is to provide as little quality content as possible in order to extract as many subscriptions as possible. That's completely fine from a business standpoint, but it's not a good situation from a consumer standpoint. 

It would be one thing if the amount of quality content increases. But these new streaming providers aren't making the pie bigger. They are just carving out their own piece. So now, we have four streaming providers that provide 100% of the quality content. That's 25% each. $40/month total. Now Disney is jumping in, but they aren't making new content. They are just decreasing Netflix content. So the entertainment pie is the same size, but you have to pay $50/month to get it. Each streaming network is only giving us 20% of the content without increasing the overall amount.

So this kind of competition isn't the kind that makes other companies better. It doesn't grow the pie so consumers get more quality content for the same price. Instead, it's the kind of competition where you succeed by hurting others. Disney makes money by making Netflix worse. Consumers get the same content for twice the price. This sucks for everyone (Consumers, existing streaming companies, etc.) except the newcomer to the field, in this case Disney.