Recently Disney announced plans to launch a subscription streaming service. Details are still thin, but we do know the service will launch in 2019, which coincides with Disney’s ending its Netflix deal for new Disney movies.
Now according to MoffettNathanson analysts that follows Disney the new service will likely be priced right around $5 a month. According to reports, Disney is hoping to make this service as available to as many people as possible.
“As we’ve pointed out in all of our work on vMVPDs, pricing matters and consumers have signaled that internet-delivered services should be priced materially below traditional products to drive broader adoption. Disney’s pricing strategy will be a key gating factor in determining the rates of adoption. If there are truly complementary services, it would be logical to offer a lower price point to consumers to denote the ‘add-on’ intention of Disney vs. a higher price point, which could signal a replacement option,” wrote Nathanson.
Disney could see revenue from its new streaming service of $34 to $38 million in the first year and $230 million a year three years after the service launches, according to reports.
Would you subscribe to Disney’s new streaming service at $5 a month? Leave us a comment and let us know.
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