Disney+ shocks journalists and competitors alike after finally giving details at its investor event about its much-buzzed SVOD service.
The Walt Disney Company unveiled on Thursday a family-friendly streaming service with TV shows and movies from some of the world’s most popular entertainment franchises in a bid to challenge the digital dominance of Netflix.
This new platform SVOD service (subscription video on demand) will initially be available exclusively in the U.S., and is set to launch in November, shocking competitors and journalists alike after announcing it will cost just $6.99 a month or $69.99 a year.
Disney+ also aims to rattle the market as the service will be ad free, breaking with Hulu and ESPN+’s ad-supported models.
According to Reuters, the digital push is Disney’s response to cord-cutting, the dropping of cable service that has hit its ESPN sports network and other channels, the rise of Netflix Inc., and the need to not feel left out of a market at a time when audiences are facing a host of choices, and monthly bills, for digital entertainment.
Breaking down the rise of Disney+
According to Business Insider, these are some of the key insights surrounding the importante investment the mouse company has made for Disney+.
Disney expects 60-90 million subscribers for Disney+ alone by the end of the 2024 fiscal year, and UBS analysts estimated that in the first year alone it could garner 5 million subscribers. That bodes well for Disney, as it’ll need about 6 million subs to recoup its foregone revenue from Netflix licensing deals alone. In pulling licensing deals from Netflix, Disney is projected to walk into an estimated $500 million loss per year overall.
Disney touts 95% brand awareness and a fan base of over 1 billion, even debuting as America’s most intimate brand in the 2019 Brand Intimacy Study by MBLM, so as for content the service will include much of the Disney content that got them there, centering around its major brands like Marvel, Disney animation, Pixar, Star Wars, and National Geographic.
Let’s see what the future holds for the Mouse House, we can at least expect to reach many of its targets sooner than later as original and exclusive content have been seen to be the differentiators in this market.