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Disney+ to Launch in November, Priced at $6.99 Monthly


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Source https://variety.com/2019/digital/news/disney-plus-streaming-launch-date-pricing-1203187007/?utm_source=share&utm_medium=ios_app

 

Disney+ will launch in the U.S. on Nov. 12, 2019, and will cost $6.99 per month, the company announced — nearly half Netflix’s standard $12.99 plan.

 

The subscription VOD service represents Disney’s biggest and most aggressive move into the video-streaming wars. By pricing it well below Netflix, the Mouse House is betting it can rapidly drive up Disney+ customer base with a mélange of content that appeals to multiple demographics, including movies and TV shows from its Marvel, Star Wars, Pixar and Disney brands.

 

The company announced the pricing, launch date, and other details Thursday at Disney’s 2019 Investor Day in Burbank, Calif. Asked by an analyst about why it set the $6.99 price point, Disney chairman and CEO Bob Iger said, “This is our first serious foray in this space, and we want to reach as many people as possible with it.â€

 

Disney+ in the U.S. also will be available for an optional annual plan for $69.99 per year (which works out to $5.83 monthly).

 

In 2018, Disney movies grossed more than $7 billion, selling 900 million tickets globally, and “we believe that demand will translate to Disney+,†said Kevin Mayer, chairman of Disney’s Direct-to-Consumer and International business segment. “We’re confident consumers are going to love the service.â€

 

In the first year after its launch, Disney+ will include 7,500 episodes of current and off-air TV shows; 25 original series and 10 original movies and specials; 400 library movie titles; and 100 recent theatrical films release, according to Agnes Chu, senior VP of content, Disney+. That includes exclusive rights to all 30 seasons of “The Simpsons,†which Disney obtained through the acquisition of 21st Century Fox. In year five of Disney+, the company expects to have an annual production slate of some 50 originals, Chu said.

 

Disney CFO Christine McCarthy said it expects 60 million to 90 million subscribers for Disney+ around the world by end of fiscal 2024 (two-thirds outside the U.S.). Disney+’s peak operating losses are expected be between fiscal years 2020-22 and is targeted to achieve profitability in fiscal 2024, McCarthy said.

 

In fiscal 2020, Disney will spend $1 billion in cash on original programming for Disney+, while it will have just under $1 billion in operating expenses, according to McCarthy. Spending on originals is mapped out to rise to around $2.5 billion by 2024.

 

Disney+ will be an ad-free service, supported solely by subscription fees. It’s going to have a wide platform footprint, spanning the web (at disneyplus.com), game consoles, smart TVs and connected streaming devices, including Roku and PlayStation 4, said Michael Paull, president of Disney Streaming Services (formerly BAMTech).

 

Within two years, Disney is aiming to have Disney+ rolled out virtually everywhere in the world. After the initial North American launch in the fourth quarter of 2019, the service will roll out to Western Europe and in Asia-Pacific regions starting in Q4 and into early 2020 and in Eastern Europe and Latin America starting at the end of 2020. The international expansion will be staged as Disney’s rights return to the company from licensees, according to Paull.

 

The new details on Disney+ come nearly two years after Disney announced the end of its exclusive output deal with Netflix in the summer of 2017 and originally revealed plans to launch its own direct-to-consumer streaming rival. The company last fall announced the Disney+ name (echoing its ESPN+ subscription offering) and previously said the SVOD service would launch in the U.S. in late 2019.

 

Disney+ will be the exclusive SVOD home for new releases from Walt Disney Studios, Pixar, Lucasfilm and Marvel beginning with the 2019 theatrical slate, which includes “Captain Marvel,†“Toy Story 4,†“Dumbo,†“Avengers: Endgame,†“Frozen II,†the live-action remakes of “Aladdin†and “The Lion King,†“Maleficent: Mistress of Evil,†and “Star Wars: Episode IX.†It also features a lineup of original series and films.

 

The service will also offer access to Disney’s film library — including, within the first year of Disney+’s launch, all of the Star Wars films, according to Lucasfilm president Kathleen Kennedy. Also in the Disney+ lineup at launch will be 250 hours of NatGeo content, including documentary films “Jane†and Oscar-winner “Free Solo,†and hundreds of episodes from Disney Channel shows as well as a brand-new “Phineas and Ferb†movie featuring many of the same voice cast.

 

At some point, Disney will “likely†deliver a discounted bundle combining Disney+, ESPN+ and Hulu, according to Mayer. But he didn’t provide any specifics. Disney+ content will all be available to download for offline viewing and will be available in 4K format, he added.

 

Disney is going out with three separate subscription-streaming products — with the potential of bundling them — to give consumers more choice, according to Iger: “A fat bundle … would not be the right thing to do in this space.â€

 

In addition to forecasts for Disney+, McCarthy projected Hulu will have 40 million-60 million subscribers by end of fiscal year 2024 with operating losses to peak at $1.5 billion in FY 2019 (and Hulu achieving profitability in FY 2023 or 2024). ESPN+ is expected to have 8 million-12 million subs by FY 2024, she said.

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the price,, i see a lot of people might leave netflix lol

That seems to be the plan. Destroy competition at first, then raise the prices again when they have market monopoly on streaming. The Amazon method of taking out competition.

 

Though, I assume pirating sites will have an easier time accessing HD content because they will rip off directly from the service instead of waiting until DVDs come out.

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