The company said Tuesday that it will offer a bundle that includes Disney+, ESPN+ and commercial-supported Hulu for $12.99 a month.
The new option from Disney (DIS) is the latest move in its plan to beat Netflix, and the pricing would make the streaming offerings incredibly competitive. Hulu alone costs $11.99 a month for the plan without ads or $5.99 a month with ads, ESPN+ is $4.99 a month, and Disney+ will be $6.99. That would add up to $17.97 if purchased à la carte.
The standard monthly subscription cost for Netflix (NFLX) is $12.99, and Amazon Prime's video streaming service is $8.99 a month.
In April, CEO Bob Iger unveiled Disney+ and said it would include exclusive access to some of the brand's popular movies, shows and characters.
Disney took over full operational control of Hulu in May following its acquisition of most of 21st Century Fox's assets.
Hulu used to be a joint venture between several media superplayers: Disney, 21st Century Fox, Comcast's NBCUniversal and Time Warner (now WarnerMedia and CNN's parent company). None of them had majority control but slowly Disney acquired more assets from its fellow media companies.
The launch of Disney+ is expected to be a major milestone for the company.
"It's going to be the most important product our company has launched in a long time, certainly in my tenure," Iger said Tuesday on a call with analysts.
Disney expects its new service will have 60 to 90 million global subscribers by 2025. By that point, Disney plans to be investing more than $2 billion on original programming.
On Tuesday, Disney reported that its revenue missed Wall Street expectations in Q3, but posted massive growth in its direct-to-consumer business — which includes ESPN+ and will include Disney+. The gains are a sign that acquiring a majority stake in Hulu has paid off.
Disney's direct-to-consumer business, which competes with platforms such as Netflix and Amazon, grew 366% compared to the same period in the prior year.
CNN's Claire Duffy contributed to this report.
No comments:
Post a Comment