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Disney Streaming Will Be 'Substantially' Cheaper Than Netflix

Disney executives say that the company's looming streaming service will be priced "substantially lower" than Netflix. Over the summer Disney announced that the company would be pulling all of its content from Netflix and launching its own streaming video service in 2018. As a result, Netflix will lose a significant number of popular Disney titles, including Star Wars: Rogue One -- as well as only popular Pixar and Marvel content.

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Disney CEO Bob Iger says that while the company's looming service will offer quality content, a lack of quantity is what will keep the consumer monthly price lower than Netflix.

"That is in part reflective of the fact that it will have substantially less volume," Iger said. "It will have a lot of high quality because of the brands and franchises that will be on it, but it will simply launch with less volume and the price will reflect that. It is our goal to attract as many subs as possible starting out," added the executive. "We think we’ve got some interesting opportunities given the affinity to Disney."

Netflix just got done raising rates back in October. As of November, subscribers of the company's $10 per month service were charged $11 per month, and subscribers of the company's premium tier (which allows for four simultaneous streams) were charged $14 per month, up from $12.

While consumers won't like the price increase, and many have complained about Netflix's shrinking catalog, most have indicated they still see Netflix as a good value, especially when compared to the price of traditional cable.

In fact, one study last year indicated that 21% of Netflix customers said they would pay $16 or more per month for the streaming service. That said, Netflix can't push its luck, either; the same survey also found that 29.3% would prefer to pay any more than they do now, while 39.1% of those surveyed said they would pay $12-$15 per month, at most.

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travelguy
join:1999-09-03
Bismarck, ND

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travelguy

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Classic Disney Strategy...

Price it low initially to get market penetration, wait for Netflix to die, then jack the price up each year...