This week, Disney announced that it’s new streaming service, Disney+, will be offered as a bundle with ESPN+ and an ad-supported version of Hulu for only $12.99 per month. And that’s only one reason that the financial firm Needham cites for its forecast of an end to the Netflix empire as we know it.
Netflix’s standard plan is offered at $12.99, meaning that for the same price, consumers can have the Disney+ bundle, which offers more content than the Netflix plan–a mere coincidence, according to Disney CEO Bob Iger. The standard Disney+ service will cost only $6.99 per month with a break for subscribers who pay for the whole year at once, which will only cost $69.99. Netflix’s lowest monthly plan currently costs $8.99.
Attendees of the 2019 D23 Expo later this month will be able to get up close and personal with Disney+ before they subscribe, and they will also be given a special offer at the time of the Expo. This is all before Disney’s new streaming video service will be rolled out to the public on November 12. The service will also offer exclusive content, such as the release of the live-action remake of Lady and the Tramp on the same day as the rollout.
The Needham firm also predicts that Disney’s new streaming service will be able to lure customers from Netflix, especially since market trends show that “U.S. consumers have shown a reluctance to add” additional streaming services.
But better prices and ease of customer acquisition weren’t the only things that Needham feels will ensure the success and market domination of Disney+. In fact, the firm cites five other reasons for its projections.
First, Disney+ will have the most Star Wars, Marvel, Pixar and Disney Princess films available from day one. It makes sense that those who love everything Disney would want to switch to Disney+, simply for the greater amount of Disney (and Disney affiliate) content. Needham also points out that with Disney’s enormous customer base, costs associated with customer acquisition will be much lower than its competitions’ costs.
Needham somewhat stated the obvious when it said that Disney’s cash flow gives it better “staying power” than Netflix. The financial firm further said it doesn’t hurt that Disney already has several of its own content studios, which means the entertainment giant is aptly prepared to turn out a higher amount of new content at a quicker pace than Netflix and other streaming services.
We’re not sure what will happen to Netflix after Disney+ launches this fall, but we’re eager to find out.
Are you a Netflix subscriber planning to switch to Disney+? We’d like to hear your thoughts in the comments below!