Subject: [NEWS] Disney Streaming Service Priced 'Substantially Below' Netflix at Launch
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
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,
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