Disney's Streaming Service Will Be Smaller And Cheaper Than Netflix

After Disney announced over the summer its move to create its own streaming service, the company said it plans to go head-to-head against Netflix by offering cheaper prices, CEO Bob Iger said in an earnings call on Thursday.

His comments come after the company announced it will pull Disney and Pixar content from Netflix is 2019 as it launches two streaming platforms. Netflix has been streaming Disney content for years on its platform, including hit movies like “Moana.”

"I can say that our plan on the Disney side is to price this substantially below where Netflix is,” Iger said in the call. “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."

The CEO said Disney’s main initial goal is to try to attract as many subscribers as it can. Those users could come from platforms like Netflix.

In July, Netflix reported having nearly 52 million users in the United States. All those consumers will miss out on Disney and Pixar movies, since the platform will have to give up right to more than 100 Disney titles by 2019. Disney content includes brands Lucasfilm, which produces Star Wars movies, Marvel Studios and Pixar. However, Marvel shows made for Netflix are expected to stay put.

Disney’s move to pull its content from Netflix was received with backlash. Thousands signed a petition against Disney’s plan to remove its content from Netflix. However, the move could lead some Netflix subscribers to leave the platform. A survey conducted after Disney’s announcement found 2 in 10 Netflix users in the U.S. are thinking about canceling their subscription if Disney pulls its content from the service. Those who are mostly considering ditching Netflix are parents of minors. The survey also found some subscribers might choose to stay if Netflix continues to provide successful original content, like “Stranger Things” and “The Crown.”

Disney’s Future Streaming Services

Disney said it will launch its direct streaming service in 2019 where it will stream movies like "Toy Story 4" and "Frozen 2."

The company will also launch an ESPN streaming service, arriving as early as next year. That service will feature an array of sports programming, including 10,000 live regional, national, and international games and events a year. It will include games from Major League Baseball, the National Hockey League, Major League Soccer and other sports, and will also allow users to purchase individual sports packages to view select sports.