Disney turns its sights on streaming
Service to focus on quality content rather than compete for volume, chief says
Disney’s upcoming streaming service won’t try to compete directly with Netflix and Amazon, but will focus instead on quality — namely original programmes from Disney’s Star Wars, Pixar and Marvel brands.
The details from Disney chief executive Bob Iger came as Disney reported a growth in earnings for the latest quarter, though results missed expectations.
With Comcast out of the bidding war, Disney is planning to move forward with its US$71.3 billion ($107b) purchase of Fox’s entertainment assets, in part to boost a Disneybranded streaming service set to launch late next year.
Disney’s shareholders and US regulators have approved the Fox bid. Disney is awaiting regulatory approval overseas.
In a statement, Iger said he was excited about “opportunities ahead for continued growth”.
Disney is building the streaming service as more people switch from traditional cable TV bundles to streaming online though services such as Amazon and Netflix.
Disney just launched a US$5-a-month ESPN Plus streaming service with sports. If the Fox deal closes, it will have a controlling stake in Hulu, which offers a broad array of programming starting at
US$8 a month. With the Disney-branded entertainment service, Disney will have more control over its movies and TV shows from creation to distribution. That ultimately gives Disney more data to gauge its audience.
Though a
There will be a significant amount of support given across all of our assets to see to it that the product launches successfully. Disney chief executive Bob Iger
price for the entertainment service hasn’t been set, Iger told analysts the price will reflect a lower volume of shows and movies. Netflix plans range from US$8 to US$14 a month. In the works for the Disney service are a live-action Star Wars series, new episodes of the animated Star Wars series Clone Wars, a live-action version of Lady and the Tramp and new series related to the High School Musical and Monsters Inc. movies. Launching the streaming services is Disney’s biggest priority next year, Iger said. “There will be a significant amount of support given across all of our assets to see to it that the product launches successfully.” Some of Disney’s properties, such as the original Star Wars trilogy, have licensing agreements already in place with other companies, so they won’t be available, at least initially.
But Iger said movies set for release in 2019, including Captain Marvel, Toy Story 4 and Frozen 2, can go to the service soon after their theatrical releases.