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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?
My kids were not allowed to watch Disney Channel or cartoon network (with rare exceptions) for most of their childhood. Toon Disney was ok because it was things like Gummibears and Ducktales. But things like Hanna Montana and Two Kings (I think that's the name) or Wasabi Dojo etc... were all off limits.
While this one rule wasn't enough to really shape their lives, my kids were almost famous among other parents for being the most well behaved and polite children in day care or school.
The Disney Channel itself has one show after the next which glorifies being stupid, arrogant, popular, bossy, etc... There are multiple shows back to back that show that the people everyone loves most are the people with the worst judgement and loudest mouths.
You would almost think that ESPN is paying Disney to make these shows to ensure they have a viewership later on.