Disney fires shot at Netflix with $12.99-a-month streaming bundle
Aug 07 2019
The "catch" is that, as noted above, you get "Hulu with ads", and there are no plans to offer a bundle with the ad-free version of Hulu.
During its earnings call today, Disney revealed a planned upcoming bundle that will give cord-cutters access to a huge amount of streaming content for less than $15 per month. Earlier this year, the company spent US$71 billion acquiring the movie and TV assets of Fox to bolster its future offerings.
"Disney has powerful content", he said in an interview with Bloomberg Television.
Disney earnings came in at $1.35 per share for the quarter ending in June, compared with analysts' estimates of $1.75 - results that sent Disney's stock down as much as 4 percent in after-hours trading. You now pay $5.99 a month for Hulu with ads, while ESPN+ charges $4.99 for live sports, original programming and access to otherwise gated content on the sports channel's website.
At the theme parks unit, overall operating income rose 4 per cent to $1.7 billion but declined at Disney's US parks.
Disney also said on Tuesday it would bundle its streaming services, charging $12.99 a month for Disney Plus, ESPN Plus and ad-supported Hulu.
20th Century Fox Film vice chairman Emma Watts was originally assumed to be moving over to Disney, with control of Deadpool as part of a package deal, but instead, the executive is remaining at Fox and had to turn over control of Deadpool and other Marvel characters to Feige. That offset box office successes such as "Avengers: Endgame".
This is bad news for Netflix and Amazon, however, neither of which can compete with the vast catalog that'll be covered by the Hulu, Disney+, and ESPN trifecta. And it comes as the ordinary consumer is increasingly going to have to be picky about what they sign up for, given that new subscription packages keep rolling out and most people won't want to (or be able to) sign up for everything. Iger said during the call that Disney will start to market Disney+ to consumers this month and attendees at the company's D23.
"Nothing is more important to us than getting this right", Iger said.
Disney's media networks business, which now includes Fox channels such as FX and National Geographic, saw operating income grow 7% to $2.1 billion in the quarter.