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Disney Will Price Streaming Service At $5 Per Month, Analyst Says (fiercecable.com)
Earlier this month, Disney announced it would end its distribution deal with Netflix and launch its own streaming service in 2019. Now, according to MoffettNathanson analyst Michael Nathanson, we have learned that Disney's new streaming service will be priced around $5 per month in order to drive wider adoption. FierceCable reports: Nathanson said that the new Disney streaming service and the upcoming ESPN streaming service need a clear distinction. The ESPN service will likely test different prices as it prepares ESPN to be ready to go fully over-the-top, according to the report, but the Disney service is about building asset value instead of taking licensing money from SVOD deals. At $5 per month in ARPU, Nathanson sees revenues from the Disney streaming service ranging from $34 million to $38 million in the first year and more than $230 million by year three. But with the loss of Netflix licensing revenues and accelerated marketing costs for launching the new service, Nathanson predicted Disney's losses will increase by about $200 million to $425 million per year. If Disney's new streaming service does end up costing around $5 per month, could you justify paying for it?
Disney movies, Star Wars, Pixar, Marvel, everything on the Disney channel?
Disney wins. Netflix loses. We're done here.
and then you will rule the world! No jews allowed!
Sure, it will be $5 forever.
Looks like they're serious about keeping the mouse in the house...
Yeah, okay. With HBO wanting 15 bones, Netflix wanting 10 bones for HD. Hulu wanting 12 bones for ad-free...
You're telling me Disney is going to ask for 5$? Maybe for an intro rate that changes after a year. Even crunchyroll wants 7$.
When the only place you can watch Disney Movies, Star Wars, and all of the Marvel movies is the disney sub you better fucking believe they're gonna charge more than 5$ a month. Plus there's all the ESPN shit they own, and anything that is ABC.
I didn't go to brandeis or yale like the analyst claiming it'll be 5$, but i'm not retarded.
This splintering of streaming services is really stupid.
There is no way I am dealing with this. Team up with NetFlix, or go home. I am not buying subscriptions for every content provider, it's just stupid.
I don't even mind if you wanna force NetFlix to collect your $5/mo to access your content, that's ok. But no to multiple stream providers, I got enough accounts all over the web as it is now.
when the cable co starts charging 200/mo for your standalone high speed internet and you need another $100/mo for 5 different subscription models, how is that better than what you have today? i'm no fan of the cable companies due to their piss poor service, but do you all realize they OWN the delivery system for their COMPETITION? They can't lose.... unless it all goes wireless.
Scott
I get tons of great content for less than that. Disney isn't so special to me and my family that we'd sign up just for that.
My Samsung television supports Netflix internally, but I use the PS4 for the service because the TV controls are awful.
And that is with the same service on different devices.
Then when you switch services, the controls and browsing is even more frustrating to switch.
We need a common streaming browsing / playing interface, which all these streaming services can be plugins for.
If only something like that existed...
this is dumb, Disney should have just had Netflix create a Disney subchannel or partnership, all the infrastructure is there, and raised the price of the channel by 3-4$ a month. I would have bought that in a heart beat.
ok now take Disney out of basic and let me save $5/mo.
that has a connection fast enough to stream. We need a download option. I have ISDN at home with sucky per minute charges, and at work we're sharing a 1.5 Mbps DSL connection from CenturyLink between almost forty people. We need a download options.
No need for cartoons and movies with I already have Crunchyroll. Might be nice if you have children. $5 is still a bit much for cheap cartoons when you can get anime for the same price.
It will probably start increasing in price over the years that follow as Disney finds out how this market works.
Netflix has clients on a large array of platforms so it is always easy to watch material. I have an Amazon Prime subscription but only a few devices have a client so I either watch on my laptop (rarely) or stream from my iPhone to my Apple TV (rarely) and I only have the subscription because of other benefits of Amazon Prime. Disney won't have such additional benefits so even at $5 a month, if I can't watch it other than on a few devices or in an inconvenient way via AirPlay then I'm not going to bother. There are other similar services around that are similarly limited and I don't subscribe to them either.
"I have the attention span of a strobe lit goldfish, please get to the point quickly!"
I somehow doubt it'll ever really be $5. I anticipate some shenanigans on the monthly bill to raise the final amount. I'm looking at you mister "franchise tax fee" on my inflated cable and phone bills!
this guy gets it. who wants this trash.
If they include Marvel stuff (which I believe they said would be separate) as well as eventually 'all' Disney movies (within reason, of course) and no rotating 'back in the vault' bs, then $5 would be a steal.
The thing with a service like this is that it's a no-brainer for parents with younger children. Yes they will absolutely shell out another $5 to have an all-Disney option.
And 5 U.S. dollars will magically turn into 10 Canadian dollars, plus taxes.
#DeleteFacebook
IF no one supports it, they will give up but some idiots will think $5 is not much and purchase it... if they cant team up with Netflix they need go home.
> If Disney's new streaming service does end up costing around $5 per month, could you justify paying for it?
Probably not. Disney has tried to roll their own before (the destructo-disks of several years ago) and when they realize that people aren't buying it, they eventually give up and do what everyone else is doing, while their marketing tries to make it seem like they invented it. (As in "Disney DVD".)
But I'm probably not the target. TV isn't that important to me. I watch a movie a week on Friday (with pizza and beer), and that probably doesn't justify signing up for yet another service. When the next Star Wars film comes out, I'll just buy the disc.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
No one will play 15 a month or even 8 for just Disney.
I thought CenturyLink had deployed fiber throughout Seattle a couple years ago. What became of that?
If Alvin and John doesn't need pants, why does Donald?
With Netflix and Amazon both trying to become their own networks, it isn't a surprise that Disney is seeing them as more of a competitor. Especially since they (Netflix) seem less willing to shell out billions for content from other networks.
With Disney owning so many channels, it shouldn't come as a surprise that they want their own streaming system.
I wonder if they'll pull their content from Sling TV as well? If so, I won't miss them.
If all Disney movies and TV shows ever are available on there, it might be worth it for families with small children.
Most adults like myself already own the MCU content, Star Wars content, and Disney movie content that they want so it's probably not worth it.
If you disagree, please post your argument. (-1, Overrated) isn't your personal censorship tool for views you don't like
Forget this shit. Staying Netflix exclusive and just over-the-air for anything else.
Just let us this level of choice on cable / sat so we don't have to deal with 3-4 different services
£5/month.
Guess this is not promoted in US
with a small child in the house disney should be a dead given
but their channel is absolute shit, you can turn it on, get a half hour of commercials of shit your kid would want to watch, then get some garbage made for 15 year old's that are not watching it anyway
NOW you want me to pay for a streaming service full of shit that a little kid wont watch, and a bigger kid wont watch as well??
LOL fuck you and good luck with that crap
I love these old companies that think they can join the modern age by copying other companies; except they always copy the wrong things and then go on to keep the things that allow the successful companies to end run the old ones.
For instance, who thinks that Disney will have endless advertising for their other products, toys, etc? Who thinks that they will have endless FBI warnings? Who thinks that they will do things to manipulate schedules so as to "addict" the little tikes?
Also who thinks that this would stay at $5 if it were to take off. I guarantee there is a spreadsheet and powerpoint presentation with an eventual price of $19.95 once they have "done in" Netflix.
Here is my simple litmus test. McDonalds and Disney have had a long standing relationship. What are the chances that somehow this new online thing continues to peddle McDonalds poison?
Here is the simple truth: People who have cut cords are enjoying their freedom from being told what to buy their kids and how their kids should think. Disney is insane if they think that people will give them money to have that crap back in their lives.
The movie industry is suffering big time from this. Quite simply, I enjoy movies, but have no idea what is on in theaters anymore. This is because I have pretty much eliminated advertising from my life. No Cable, no newspapers (foreign magazines only), adblocking galore, and subscriptions to things like Netflix that don't advertise much (some product placements). I am a much happier person for this.
I would love to raise kids now that they won't plunk themselves in front of TV and be told what to buy for the next 18 years.
If it winds up being $AU8 then forget it, but $AU5, that and Stan ($AU10 a month) has everything my kids watch for the same price as Netflix ($AU15). Sure I'll consider it.
Make SELinux enforcing again!
If Disney's new streaming service does end up costing around $5 per month, could you justify paying for it?
No. Absolutely not. I already pay for two services. There is no way I will pay for yet another. Will not happen.
The only way I would go with a new service, is if the new one were to supplant the existing ones in terms of the content I am interested in, so that I can get rid of them, which is also not going to happen with all of the "exclusivity" nonsense going on.
In short: No.
could I justify paying it? sure. WILL I justify paying it? Fuck NO. supporting this would mean supporting proliferation of streaming services, the end result is me having to subscribe to 20 or 30 streaming services to get content I currently get from a couple or worse yet it drives the collapse of content provider agnostic services forcing everyone into this fucked up model, NO THANKS.
While bundling sites might work Disney doing it's own thing will actually lead to more piracy. Everything for $40 is the magic price point for streaming. $10 more for sports. If all the content producers are going a la cart then it should be more like $2 for Disney and $5 for HBO originals.
At $5 or even $20 I'm instantly thinking... signup once or twice a year and rip everything I'm interested in to a hard drive or more simply just binge it all in a month. But I'm lazy and tend to just not watch TV anymore if it's not cheap and convenient.
If Disney's new streaming service does end up costing around $5 per month, could you justify paying for it?
It's not the price that'll need to be justified.
It's the damn fragmentation.
And how will the application be? What quality will they stream in? Will it be stable and support all major platforms, and the popular smaller ones, at launch?
It's already a crap-shoot when trying a new provider. Out of my 8 or so providers (most of them I get bundled), only 2 of them are of sufficient quality; Netflix and HBO Nordic.
The rest is a mixture of missing sufficient sound quality or no Full HD. I don't want to pay for the "privilege" to watch Movies and TV Shows in SD and crappy Stereo sound. They may be 'fine' for mobile devices, but I have a TV and a surround system; I, at the very least, want HD and DD+ 5.1.
- Don't do what I do, it's probably not healthy nor safe. -
...how they price their service, i'm only subscribing to one streaming service, and for now it is Netflix that still provides me with the most content i'm interested in.
i don't really care losing disney, because of all the things I watch, not much is disney related (except the Marvel-Netflix series).
On a long enough timeline, the survival rate for everyone drops to zero.
Now I can see exactly how much money I'll be saving by ignoring their service completely. $60 a year added to what I don't spend on CBS's service is starting to look like real money!
Appended to the end of comments you post. 120 chars.
Indoctrinate those little minds while they are open and receptive,
and they will be Disney subscribers for life.
If it is the whole catalog, all the time, yes. If there are any strings attached, a big resounding no. Your move, Disney.
Didn't expect to be going with this service, but $5 is a low enough price to make me consider it.
Of course it depends on what I'd be getting at that price.
It also depends on how long it is before they jack it up.
I'm already paying $10/mo for Netflix which used to have the Disney content. One subscription service is enough - if I were to jump on this bandwagon it would pretty much be like paying $15/mo for Netflix. Guess I'll just go back to the former convenient way of watching Disney content.
When this news came out, I predicted
if it doesn't cost at minimum 2x as much as Netflicks [sic} and suck hard, I'll be really surprised. When the only way to watch some of the older Disney movies, Star Wars, and Marvel movies is their platform, they're going to squeeze people soooo hard..... I wouldn't be surprised if the blueray prices got bumped up as well, just to make sure that their streaming service looks a little more enticing.
I'm sticking by that, not because I'm an analyst in the field, but because Disney has a long, storied tradition of ripping customers off and squeezing every list cent out of things. The analyst gives no rational in this article for why $5, except "to drive adoption." BS that it's going to be $5. I don't even believe that it will be $5 for the intro rate, for the roll-out. Disney gives nothing away.
Velociraptor = Distiraptor / Timeraptor
According to Disney, you don't own any of that content. You should know that by now. Disney owns it, and you simply have a copy - otherwise you are a filthy thief.
My beliefs do not require that you agree with them.
Doesn't Disney own ESPN? Will we be getting streaming sports along with all the other Disney properties? I'm suddenly a lot more interested than just being able to watch Marvel and Lucasfilm movies on demand (like many, I already buy the movies I want).
This is why torrents and 'other' modes of streaming services will never die. People will always find a better way.
If Alvin and John doesn't need pants, why does Donald?
John is wearing a sleeping gown, which was common sleeping wear back in the day. Nothing immodest about it, even if it is dated.
And Donald is wearing a natural covering of feathers that adequately cover his inside-out pOnOs.
Why is Disney even in basic?