GM Thought of The Week: The Walt Disney Company are launching their own streaming service Disney+
The Walt Disney Company announced last month that they will be launching their own streaming service in 2019. This is big news, as it will mean there will be another player in the battle to be number one in the SVOD war. Netflix are currently on top, closely followed by Amazon Video.
Disney+ will launch in November this year in the United States, and then in the UK at some point in early 2020. The UK monthly fee is yet to be announced, but the US price will be a very competitive $6.99. In contrast, Netflix has just increased its monthly subscription cost to $12.99.
Disney’s spending on original content is quoted to be around $1billion in the first year and expected to grow to $2.4 billion by 2024. By comparison, Netflix had a reported $12 billion budget for content last year, which included spending on originals as well as payments to license other companies’ shows and movies. Ironically, this included money paid to Disney to be the first provider to stream its films like Coco and Avengers: Infinity War.
The exciting new content promised by Disney + includes exclusive online originals such as a new Toy Story spin off (with characters from this summer’s sequel), as well as big budget Star Wars spin off – The Mandalorian. This new content will sit alongside Disney family classics such as Mary Poppins and many more films and TV series from across the Disney, Lucas films and Pixar back catalogue. With every series of the Simpsons available to stream, plus classics from the golden age of Disney, the new service is going to be a massive hit with kids of ALL ages.
People love to speculate about whether every new streaming service could be a “Netflix killer.” But even by Disney’s own projections, Disney + won’t come close to matching Netflix’s vast amount of subscribers for years. So, why have Disney done this? I guess they can’t sit back and let Netflix dominate the SVOD market as they currently do, and the launch neatly coincides with the end of the Netflix and Marvel deal.