Game Theory Analysis of Competitive Dynamics in the Streaming Industry: A Comparative Study of Netflix and Disney+

In the contemporary digital age, streaming platforms have significantly transformed the entertainment industry by providing unparalleled convenience and enjoyment. This paper employs game theory concepts in the competitive dynamics between two prominent streaming services, Netflix and Disney+. The primary objective is to understand how these platforms interact competitively, focusing on pricing, marketing, and content acquisition. Key concepts from game theory, such as mixed strategies, grim-trigger, and the end-game effect, are applied to identify marketing niches where both companies might stabilize their strategies. Additionally, the study explores how exclusive content and strategic collaborations shape their competitive landscape, impacting their market positions and profitability. This paper aims to offer insights into the potential outcomes of their competition and suggest strategic actions to enhance their market advantage. Furthermore, the study examines consumer behavior trends and their influence on platform loyalty and subscription decisions, offering a comprehensive view of the streaming market's dynamics.