> That does seem like a much better deal than Netflix.
It depends what the Disney+ catalog is like and whether they infest it with ads, too; ESPN+ has ads, and the Hulu tier in the bundle of the ad-heavy tier. So, it's looking a lot like paying for a package of basic cable channels compared to paying for a premium package with Netflix or HBO. There might be more total content, but it's offset by advertising: what your ad tolerance is will be a big factor in which is better.
Of course, as with basic cable and premium channels, there's no reason one has to win over the other—plenty of people could end up paying for both.
Worryingly so. To my mind, the price looks intended to kill off other independent services, especially netflix. I can't see these deals lasting at all, but even three or four years could be enough to cripple Netflix so long as they are generous with their back catalogue and new releases.
Hulu brings in a ton of ad money already, if this is an ad-supported bundle for all of it, they probably have way more pricing flexibility than Netflix.
This seems factually wrong. I haven't checked the data, but Netflix has been streaming for like a decade, and while they've increased the price from time to time it's hardly been annually.
I think what I've paid has gone from $8 to $13 in 10 years?
I would expect Disney to be willing to operate at a loss for years on Disney+, in order to catch up some on subscribers. Investors will want to see sales & subscriber growth more than profit at this point, from that service. They're not expecting profit anytime soon. A failure on gaining subscribers will be a big hit to the stock however, it'll indicate a permanent subservience to Netflix in streaming. If they generate large subscriber gains, the market will reward them for it considerably and forward bet on eventual profits.
Disney has $13.x billion in operating income, they can easily afford to try to tip over Netflix's money burning machine and try to hurt them financially. The $12.99 figure puts a further cap on the pricing power that Netflix has at this point, which is also a cap on their ability to fix their severe cash burn problem. Disney can play a long game and watch Netflix continue to drown in debt interest costs.
If you're not a sports fan, it seems about equal to Netflix. From my experience, Hulu is flat out worse than Netflix, then adding in Disney raises the value. That being said, I'm much rather just have Disney movies on Netflix.
Its easy when you don't need to make money from it. Netflix makes all its money from subscription, so has to actually cover their costs. Disney makes most of its money from parks, merch and movies.
Side note: would love to see an extensive study on the subscription economy - stats on what the average household spends by category.