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Subject: [NEWS] Disney Streaming Service Priced 'Substantially Below' Netflix at Launch
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Subject: [NEWS] Disney Streaming Service Priced Substantially Below Netflix at Launch
Date: Wed, 15 Nov 2017 09:20:18 +1300
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From MacRumors.com ...


    Disney Streaming Service Will Be Priced
    'Substantially Below' Netflix at Launch
    ---------------------------------------
    During Disney's latest quarterly earnings call, company chairman
    and CEO Bob Iger mentioned that its upcoming, exclusive streaming
    service will have a monthly subscription cost at an amount that's
    "substantially below" the price of rival Netflix. Disney has been
    dropping tidbits about its upcoming 2019 streaming service over
    the past few weeks, but had not yet hinted at how much the
    service will cost subscribers.

    Iger still hasn't provided the specific price point viewers can
    expect to pay to watch Walt Disney Animation Studios, Pixar,
    Marvel, and Star Wars films and TV shows on the unnamed service,
    but we now at least know Disney intends to undercut Netflix on
    pricing. Currently, Netflix's US$9.99/month standard tier (with
    streaming on two screens at once) is set to begin increasing to
    US$10.99/month for subscribers this fall and winter.

    Of course, Netflix also has the basic US$7.99/month plan (SD and
    only streaming on one screen at a time), so it's unclear which
    price point Iger may have been referring to. Iger did mention,
    however, that the Disney streaming service price will be
    reflective of the "fact that it will have substantially less
    volume" than Netflix when it launches. Disney sees this low
    price as a starting off point that will grow to "reflect the
    added volume" of content that is launched on the service in the
    future, similar to what Netflix is doing with its new
    US$10.99/month price hike.

        "I can say that our plan on the Disney side is to
         price this substantially below where Netflix is.
         That is in part reflective of the fact that it
         will have substantially less volume. It'll have
         a lot of high quality because of the brands and
         the franchises that will be on it that we've
         talked about. But it'll simply launch with less
         volume, and the price will reflect that.

         There's a gigantic potential Disney customer base
         out there that we're going to seek to attract
         with pricing that is commensurate with or that
         balances the quality of the brands and franchises
         that are in there, but also takes into account
         the volume. And that will give us an opportunity
         to grow in volume and to have the pricing over
         time reflect the added volume as this product
         ages."

    After announcing the direct-to-consumer streaming service in
    August, speculation spread concerning whether or not Marvel and
    Star Wars would be getting their own unique streaming platforms.
    Disney eventually confirmed those two franchises would be
    integrated into the main service. In the new earnings call, the
    company mentioned some of the content will include four to five
    exclusive feature films each year and multiple original TV shows.
    The first set of shows will be a live action series based in the
    Star Wars universe, a High School Musical series, and a Monsters,
    Inc. series.

    A report last week also mentioned Disney's interest in purchasing
    cable and movie assets owned by 21st Century Fox, which would
    include Fox's 30 percent stake in Hulu. With Disney's current 30 per
    cent stake, the company would become a majority shareholder and gain
    another area to expand it streaming capabilities to consumers. While
    the two companies are said to not currently be talking, neither has
    given up on the idea of making a deal and "pencils aren't down."

    With the launch of the Disney service, the company will be removing
    all of its films and most of its TV shows from Netflix. It's still
    unclear when that will begin happening, but it might begin sometime
    in 2018, ahead of the new service's launch in 2019. Currently,
    subscribers to Netflix can watch Disney movies including Moana,
    Finding Dory, Doctor Strange, and much more, which will all disappear
    by 2019.


<https://www.macrumors.com/2017/11/14/disney-streaming-service-below-...