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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?
Depends... if you see most of the biggies in the theaters, then unless you like re-watching movies a lot, $60/year may not get you a lot. It's a very limited catalog compared to the bulk of what's out there. Of course, there's more than that... if they include all the Touchstone pictures, and they include their whole catalog and not just some limited selection every month (and if they stop "vaulting" the classics), then it certainly would be a clear win.
Stupid sexy Flanders.
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.
ok now take Disney out of basic and let me save $5/mo.
Disney movies, Star Wars, Pixar, Marvel, everything on the Disney channel?
Disney wins. Netflix loses. We're done here.
If it's their full catalog and they did away with the vault then yeah, $5 per month is a very good deal. My kids would be very content with only watching Pixar, Marvel, and Disney movies but considering that $5/month is cheaper than what it costs to add just the Disney Channel to most cable packages, I very seriously doubt it will be the full catalog. HBO charges $15/month for its content and doesn't have near the depth of Disney.
It would be interesting to see what would happen if they did offer their entire IP for $5/month. I don't subscribe to any streaming services at the moment but I would pay for that and plenty of other parents would too.