Disney streaming outages mar its first day as Netflix rival
Walt Disney Co.’s much-anticipated debut of its new streaming video service was marred by technical glitches and crashes for some users, though it still stirred excitement online.
New “Star Wars” series “The Mandalorian” was trending on social media, and Twitter users cheered that they were finally able to sign up and watch Disney+ after months of well-orchestrated promotions from the Disney marketing machine.
Some users reported trouble getting the app to work as soon as they tried to log on in the early hours of Tuesday morning, when the East Coast of the U.S. and Canada was waking up. Problems reported on the @DisneyPlusHelp Twitter handle ranged from “service not available” to specific issues such as “The early seasons of The Simpsons are in the wrong aspect ratio.”
Disney said consumer demand for the service had exceeded its highest expectations. “While we are pleased by this incredible response, we are aware of the current user issues and are working to swiftly resolve them,” a spokeswoman said in a statement, mirroring a tweet on the help-line account.
The glitches ramped up from about a hundred reported outages to more than 7,000 within the span of an hour on DownDetector.com. They dipped to about one-tenth of that by midday but were rising again in the evening New York time as consumers returning home from work tried to log on.
Disney is hardly the first media company to struggle with the technical side of streaming. In 2014, HBO’s streaming service crashed during the season premiere of “Game of Thrones.” Even technology giants like Amazon and YouTube have had problems, though their glitches happened while broadcasting live sports online, which is seen as more difficult than streaming on-demand TV shows and movies. Disney bought a controlling stake in BAMTech, a leader in streaming technology, to run the back end of its online services like Disney+.
Streaming services often struggle when many people try to watch at the same time, said Dan Rayburn, the principal analyst at Frost & Sullivan, who writes for the website Streamingmediablog.com. “It’s hard because of the complexity of the workflow and doing it at scale,” Rayburn said.
It’s not just streaming shows smoothly, he added, but also managing the backend database, like whether a user had paid and setting up a profile.
“If in the next two or three hours everything is cleared up, it’s not that big of a deal,” he said. “If this continues throughout the day, this is a real problem.”
Crowded Market
In its quest to turn a nearly century-old entertainment giant into a streaming leader, Disney is entering a market already crowded with heavy hitters, including Netflix Inc., Amazon.com and Apple Inc. And more rivals are diving in soon, such as AT&T Inc. and Comcast Corp. next year. The world’s largest entertainment company thinks it can seize the day with a product packed with the company’s best movies and TV shows, including “Star Wars,” Marvel and Pixar films, as well as its library of some 400 children’s movies. “I feel great about what we’ve done,” Chief Executive Officer Bob Iger told a roomful of reporters last week. “I love the app. It’s rich in content. It’s rich in brands. It’s rich in library.”
Priced at $7 a month, Disney+ is a bet that the company can attract as many as 90 million subscribers worldwide in five years.
It already has some key allies. Some 19 million Verizon Communications Inc. customers will be able to get the service free for the first year, thanks to a deal Disney cut with the carrier. Disney fan club members, meanwhile, got to prepay for a three-year subscription for less than $4 a month.
“These are deals you just can’t beat,” said Kevin Mayer, who heads Disney’s direct-to-consumer division and has helped craft the streaming strategy.
Disney shares rose 1.4% to $138.58 at the close of trading Tuesday in New York.
Disney is looking to make the product accessible to as many people as possible. Customers will get to store their password in as many as 10 devices per family and watch four concurrent streams of movies or shows.
The site is designed around five main “tiles,” named after the company’s key brands, including Marvel and the recently acquired National Geographic channel. Disney is spending $1 billion on new programming — such as “The Mandalorian,” the first live-action “Star Wars” series — in the first year alone. Disney+ also will offer the “Star Wars” movies in 4K-definition video for the first time.
Unlike Netflix, which releases new seasons of programs all at once. Disney+ will put out one episode per week for its original shows. The programs will come out at midnight Pacific time on Fridays — timing geared toward attracting a global audience, according to Ricky Strauss, Disney’s head of content and marketing for the product.
A key part of Disney’s streaming strategy is bundling its services together. For $12.99, subscribers can get a package that includes Disney+, ESPN+ and the ad-supported version of Hulu. Those three services would cost about $18 a month if purchased individually.