Disney's Streaming Service Will Cost 'Substantially' Less than Netflix

11 November, 2017, 01:12 | Author: Greg Santos
  • Star Wars Obi Wan Kenobi movie

Disney's new film and SVOD announcements come as the company's media networks business continues to struggle, declining 3% in fourth quarter revenue to US$5.5 billion. While Bob says the price is not set, I would guess it to be about $6.99 by the time it launches.

Amid declines in its cable, broadcasting and studio Q4 earnings, Disney has announced that The Last Jedi helmer Rian Johnson will create a new trilogy of Star Wars films and the company is launching new Star Wars and Marvel TV content for its upcoming subscription streaming service.

What's more, it's been revealed that Disney had set its sights on the rival studio not just to complete their Marvel Cinematic Universe, but rather to also acquire the massive library of original programming put out by Fox's TV arm.

Wall Street analysts have an average price target of $110.48 for the stock - 7.6% above Thursday's closing price.

Iger said in the call that Disney's platform would be "substantially cheaper" than Netflix, which now charges $10.99 / £5.99 a month for its basic package. But with Johnson's new trilogy said to "introduce new characters from a corner of the galaxy that Star Wars lore has never before explored" perhaps this series will follow a similar lead.

For the quarter ended September 30, Disney reported earnings of $1.07 a share, excluding some items, missing the $1.14 average of analysts' estimates.

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Mr. Iger also revealed that an ESPN digital offering scheduled for next year will debut in the spring and be called ESPN Plus.

Star Wars has been explored in five animated animated shows over the years, and in three live-action TV specials, including the much maligned Star Wars: Holiday Special. The company held an investors meeting to detail its future projects, and Disney confirmed a series of new Star Wars projects were in the work.

A series based on the Pixar film franchise, Monsters, Inc.

It will develop a new "Star Wars" live action tv show along with other properties for subscribers.

"As I've said earlier, we're going launch this thing pretty aggressively", he said on the call Thursday.

The launch of this new service is still two years away, so we're obviously still waiting for more information.

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