During Disney's latest quarterly earnings call, company chairman and CEO Bob Iger mentioned that its upcoming, exclusive streaming service will have a monthly subscription cost at an amount that's "substantially below" the price of rival Netflix (via Seeking Alpha). Disney has been dropping tidbits about its upcoming 2019 streaming service over the past few weeks, but had not yet hinted at how much the service will cost subscribers.

Iger still hasn't provided the specific price point viewers can expect to pay to watch Walt Disney Animation Studios, Pixar, Marvel, and Star Wars films and TV shows on the unnamed service, but we now at least know Disney intends to undercut Netflix on pricing. Currently, Netflix's $9.99/month standard tier (with streaming on two screens at once) is set to begin increasing to $10.99/month for subscribers this fall and winter.

netflixdisney

A few Disney films currently on Netflix

Of course, Netflix also has the basic $7.99/month plan (SD and only streaming on one screen at a time), so it's unclear which price point Iger may have been referring to. Iger did mention, however, that the Disney streaming service price will be reflective of the "fact that it will have substantially less volume" than Netflix when it launches. Disney sees this low price as a starting off point that will grow to "reflect the added volume" of content that is launched on the service in the future, similar to what Netflix is doing with its new $10.99/month price hike.

I can say that our plan on the Disney side is to price this substantially below where Netflix is. That is in part reflective of the fact that it will have substantially less volume. It'll have a lot of high quality because of the brands and the franchises that will be on it that we've talked about. But it'll simply launch with less volume, and the price will reflect that.

There's a gigantic potential Disney customer base out there that we're going to seek to attract with pricing that is commensurate with or that balances the quality of the brands and franchises that are in there, but also takes into account the volume. And that will give us an opportunity to grow in volume and to have the pricing over time reflect the added volume as this product ages.

After announcing the direct-to-consumer streaming service in August, speculation spread concerning whether or not Marvel and Star Wars would be getting their own unique streaming platforms. Disney eventually confirmed those two franchises would be integrated into the main service. In the new earnings call, the company mentioned some of the content will include four to five exclusive feature films each year and multiple original TV shows. The first set of shows will be a live action series based in the Star Wars universe, a High School Musical series, and a Monsters, Inc. series.

A report last week also mentioned Disney's interest in purchasing cable and movie assets owned by 21st Century Fox, which would include Fox's 30 percent stake in Hulu. With Disney's current 30 percent stake, the company would become a majority shareholder and gain another area to expand it streaming capabilities to consumers. While the two companies are said to not currently be talking, neither has given up on the idea of making a deal and "pencils aren't down."

With the launch of the Disney service, the company will be removing all of its films and most of its TV shows from Netflix. It's still unclear when that will begin happening, but it might begin sometime in 2018, ahead of the new service's launch in 2019. Currently, subscribers to Netflix can watch Disney movies including Moana, Finding Dory, Doctor Strange, and much more, which will all disappear by 2019.

Tag: Disney

Top Rated Comments

max2 Avatar
83 months ago
Then it will go up in price.
Score: 15 Votes (Like | Disagree)
ArtOfWarfare Avatar
83 months ago
It'd be nice if CBS recognized how little their service offered and would price themselves substancially below Netflix.

$6/month for one channel? Get out.
Score: 13 Votes (Like | Disagree)
madKIR Avatar
83 months ago
What are you talking about? Disney owns way more content than Netflix.
What are YOU talking about? Netflix has tons of original content now. Disney might have a big library of their past releases, but at this rate of original content Netflix is producing now, Disney is not even in the same category.
Score: 7 Votes (Like | Disagree)
shareef777 Avatar
83 months ago
It'd be nice if CBS recognized how little their service offered and would price themselves substancially below Netflix.

$7/month for one channel? Get out.
I used to pay one company (Comcast) $100 a month for all my TV services. What good does it do me when I have to pay the same $100 (probably even more) but to 10 different companies!? The notion of you being able to pick and choose is ridiculous as sports networks make it mandatory to have all providers to view all games.

This is why piracy will remain alive and well.
Score: 6 Votes (Like | Disagree)
576316 Avatar
83 months ago
It's not difficult, considering Netflix is over priced.
Score: 5 Votes (Like | Disagree)
Zxxv Avatar
83 months ago
...and will rise gradually. Like placing a frog in tepid water and slowly turning up the heat.
Score: 5 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...