Price Of Disney Streaming Service To Be "Substantially" Below Netflix, Inc
Nov 11 2017
Disney executives revealed that its new sports streaming service would be branded ESPN Plus (ESPN+) and be available in spring 2018 through a revamped app and permit subscriptions to thousands of additional live sporting events.
Perhaps more importantly, Iger said Disney's planned streaming service would be "substantially" cheaper than Netflix.
Such a service would include Disney's enormous catalogue of beloved films, as well as decades-worth of TV series made for the Disney Channel and films from Marvel, LucasFilm and Pixar.
"We also believe that our brands and our franchises really matter, as we've seen through Netflix and all our other platforms".
"It's becoming an internet TV world", Hastings said, "which presents both challenges and opportunities for Netflix as we strive to earn screen time".
What's more, it's been revealed that Disney had set its sights on the rival studio not just to complete their Marvel Cinematic Universe, but rather to also acquire the massive library of original programming put out by Fox's TV arm.
This week, Disney CEO also announced that they plan on making sure their streaming service is "substantially below" the current price of Netflix, which now sits at a $10.99 a month price point for USA subscribers, and will likely increase in the coming years.
Disney plans to price its streaming service below what Netflix charges based on the fact that it will have less content initially, Iger said.
ESPN continued to lose subscribers in its fiscal fourth quarter ended September 30 while programming costs for sports rights rose and advertising revenue declined. The parks and resorts segment, however, was a standout: Revenues jumped 6 percent to $4.7 billion, and segment operating income was $746 million, a 7 percent increase.
Indeed, the new movies will be completely separate from the so-called Skywalker saga on which the current films are based. Although profit rose, Hurricane Irma forced Disney to close its four Orlando, Fla., parks for two days and cancel three cruises.
For the quarter ended September 30, Disney reported earnings of $1.07 a share, excluding some items, missing the $1.14 average of analysts' estimates.
Disney's drop in theatrical distribution revenues was primarily driven by the under-performance of Cars 3 compared to Finding Dory in the prior-year quarter.