In a little over 3 weeks, Disney will launch its streaming
service Disney+ for $6.99/month (or $69.99/year). Subscribers will get access to movies and TV series
from Disney, Pixar, National Geographic, Marvel, and Star Wars. In a brilliant move, Disney is releasing the weekly
Star Wars universe TV series, Mandalorian, at the launch of the streaming
service. Other brilliant moves include
the offer to pre-order the service prior to November 12th, and the bundle for
$13/month for Disney+ with Hulu and ESPN+.
The bundle, a combination of kids’ shows and movies (including the library
of classics), entertainment for adults, and sports programming, seems an ideal
package for many households. Disney will
need about 2 million subscribers to just make up the $150 million per year in
licensing fees from Netflix that goes away at the end of the year. Expect that threshold will be met quickly because
of the value proposition that Disney is offering out of the gate. The question is how will Netflix fare? Without Disney content and a monthly price
points of 12.99 (standard) and $15.99
(premium) will there be a larger than expected drop in Netflix subscribers? Expect there will be challenges ahead for
Netflix as its dominance in streaming will be challenged by well-financed,
well-known competitors.
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