Details revealed about Disney’s new streaming service

Aug 27, 2018 | Blog post

In this episode: New details about Disney's upcoming streaming service revealed!

Choosing what you want to watch

Over the last several years, OTT (over-the-top) companies have made waves in the entertainment industry by changing the habits of how many consumers view programming. Services like Netflix, Hulu, Amazon Video, and YouTube TV are among the services that allow consumers to “cut-the-cord” from traditional services like cable TV and satellite providers by using their internet connections to stream the content that they want to watch. Many of these companies also refer to themselves as “direct-to-consumer”, or DTC companies.

Last year the Disney company announced that it would be building it’s own OTT to compete in this area. Today we have a few more details about Disney’s new streaming service via an article where Disney CEO Bob Iger spoke to Variety.

Watching Disney content in the future

The new service is tentatively called ‘Disney Play’ (not to be confused with their current parks app ‘Play Disney’) and is looking to be one of the top contenders in the OTT market space. Although the service isn’t schedule to launch until the second half of 2019, Disney has already started the process of pulling many of their titles from the Netflix platform. The plan is to migrate all Disney, Pixar, Marvel, and Star Wars content to their platform (with the exception of Netflix original series like Jessica Jones, Luke Cage, The Defenders, Iron Fist and Daredevil).

Some top tier content that will notably be missing are the first 6 films in the Star Wars franchise since TBS currently owns the television rights for those films through 2022. We still don’t know much about how the FOX acquisition will play into the new service but we do know that once that is finalized Disney will own majority stake in Hulu.

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Variety has reported that by moving their content to their new streaming service, Disney will be taking an annual loss of about $300 million in revenue that they receive from pay-TV rights for other services and networks showing their content. As part of the new model, In an effort to entice new customers, Disney will be tapping into four of their major franchises to create their own “Made for Disney Play” content which includes films and exclusive series for High School Musical, Monsters, Inc, Marvel and Star Wars.

The cost

Analysts have told variety that in order for Disney Play to break even, the service would need approximately 40 million subscribers paying a minimum of $6 a month. Currently, Netflix’s starting price is $8.99 and Bob Iger has stated that the new Disney service will be “less than Netflix” but he also suggested that the price may go up as new content is added to the service.

What do you think about the new Disney streaming service? What do you think about the possible $6-$8 price range when it kick-off? Are you currently using any other services? Let us know in the comments section below!


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1 Comment

  1. Jillybean

    I currently use several streaming services to be able to watch what I want, seemingly wherever I want. I’m looking forward to see what Disney Play pans out to. I was looking forward to the new contract with Netflix, as I’ve been a subscriber since 2007, but noticed several movies missing. Sure I have hard copies of the movies, but I like the convenience of being able to stream them. We shall see what happens.*FGP Squad*


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