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
52 months ago
Then it will go up in price.
Score: 15 Votes (Like | Disagree)
ArtOfWarfare Avatar
52 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
52 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
52 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
52 months ago
It's not difficult, considering Netflix is over priced.
Score: 5 Votes (Like | Disagree)
Zxxv Avatar
52 months ago
...and will rise gradually. Like placing a frog in tepid water and slowly turning up the heat.
Score: 5 Votes (Like | Disagree)

Related Stories

studio buds family

Beats Studio Buds Debuting Today With Active Noise Cancellation, Stemless Design, and More for $150

Monday June 14, 2021 8:00 am PDT by
We've seen a lot of teasers about the Beats Studio Buds over the past month since they first showed up in Apple's beta software updates, and today they're finally official. The Beats Studio Buds are available to order today in red, white, and black ahead of a June 24 ship date, and they're priced at $149.99. The Studio Buds are the first Beats-branded earbuds to truly compete with AirPods...
macos catalina legacy system extension alert

Apple Begins Warning Users That 'Legacy System Extensions' Won't Work With a Future Version of macOS

Wednesday March 25, 2020 9:53 am PDT by
Apple has shared a new support document that indicates kernel extensions — which it calls "legacy system extensions" — will not be compatible with a future version of macOS because they "aren't as secure or reliable as modern alternatives."System extensions are a category of software that works in the background to extend the functionality of your Mac. Some apps install kernel extensions, which...
General Spotify Feature

Spotify Pauses Plans to Add AirPlay 2 Support to iOS App [Update: Spotify Clarifies]

Friday August 6, 2021 9:07 am PDT by
See update at bottom of article Spotify this week confirmed that its plans to add AirPlay 2 support to its iOS app have been placed on indefinite hiatus. In an online discussion forum post, a Spotify representative said the streaming music service had been working on supporting AirPlay 2, but the company has paused the efforts "for now" due to "audio driver compatibility issues." The...
apple privacy

Apple Publishes FAQ to Address Concerns About CSAM Detection and Messages Scanning

Monday August 9, 2021 1:50 am PDT by
Apple has published a FAQ titled "Expanded Protections for Children" which aims to allay users' privacy concerns about the new CSAM detection in iCloud Photos and communication safety for Messages features that the company announced last week. "Since we announced these features, many stakeholders including privacy organizations and child safety organizations have expressed their support of...
youtube apple tv

YouTube Discontinuing 3rd-Generation Apple TV App, AirPlay Still Available

Wednesday February 3, 2021 3:09 pm PST by
YouTube is planning to stop supporting its YouTube app on the third-generation Apple TV models, where YouTube has long been available as a channel option. A 9to5Mac reader received a message about the upcoming app discontinuation, which is set to take place in March.Starting early March, the YouTube app will no longer be available on Apple TV (3rd generation). You can still watch YouTube on...
m1 macbook air

Kuo: Mini-LED MacBook Air Coming in Mid-2022

Thursday July 22, 2021 7:48 pm PDT by
Apple will release a new version of the MacBook Air around the middle of 2022, Apple analyst Ming-Chi Kuo said today in note to investors seen by MacRumors. The upcoming MacBook Air will feature a 13.3-inch mini-LED display, which would make it the second Mac to gain mini-LED technology after the 2021 MacBook Pro, which is rumored to include a mini-LED display and is expected to launch later ...
Apple Films Tom Hanks Finch First Look

Apple Original Film 'Finch' Starring Tom Hanks to Premiere November 5

Thursday August 12, 2021 8:52 am PDT by
Apple today announced that the original film "Finch," starring Tom Hanks in its titular role, will premiere on Apple TV+ on Friday, November 5 and shared a first-look image from the film. The first look at "Finch," shared by Apple. The film, which is anticipated to be an awards season contender, revolves around a man, a robot (played by "Get Out" actor Caleb Landry Jones), and a dog that form ...
whatsintheboxiphonexs

Apple's iPhone XS, XS Max and XR Won't Ship With Lightning to 3.5mm Headphone Jack Adapter

Wednesday September 12, 2018 12:58 pm PDT by
Since the headphone jack was removed from the iPhone with the launch of the iPhone 7, Apple has bundled iPhones with a Lightning to 3.5mm Headphone Jack Adapter for customers who continue to have 3.5mm headphones. With the launch of the iPhone XS, iPhone XS Max, and iPhone XR, Apple is discontinuing this practice and will not include the Lightning to 3.5mm Headphone Jack Adapter. On the...
macbook air m1 first benchmark

Apple Silicon M1 Chip in MacBook Air Outperforms High-End 16-Inch MacBook Pro

Wednesday November 11, 2020 4:43 pm PST by
Apple introduced the first MacBook Air, MacBook Pro, and Mac mini with M1 Apple Silicon chips yesterday, and as of today, the first benchmark of the new chip appears to be showing up on the Geekbench site. The M1 chip, which belongs to a MacBook Air with 8GB RAM, features a single-core score of 1687 and a multi-core score of 7433. According to the benchmark, the M1 has a 3.2GHz base...
iphone 13 teal with text

Apple Begins Preparation for iPhone 13 Production Ahead of Fall Launch

Monday June 28, 2021 3:29 am PDT by
We're just a few months away from when Apple is expected to reveal the 2021 iPhone, dubbed the "iPhone 13." In preparation for its launch, it has been pulling in shipments of different components needed to produce the new iPhones, according to a report from DigiTimes. In years past, Apple released its latest iPhone lineup, alongside a new Apple Watch, during a September event at Apple Park....