Disney's New Streaming Service to Bring Out Films From the Vault

11:49 03/09/2019

For those of you who love Disney's DIS  movies, you will be excited to learn that the company's new streaming service Disney+ will have the entire Disney library of movies.

According to Polygon, Disney's CEO Bob Iger has said this week that the service is expected to launch later this year and will have all of Disney's films on the platform.

Traditionally Disney's films had been released to home video, DVD, and BlueRay only for a limited time before they went back into the vault. Now subscribers of the company's streaming service will be able to watch them whenever they want.

The launch of the service, which will rival Netflix, will cost Disney $150 million because it will no longer be licensing its content to Netflix.

According to J.P. Morgan, Disney+ will be pretty popular, even more so than Netflix. Analyst Alexia Quadrani told clients this week to expect that the service will eventually draw 160 million subscribers from around the world. Netflix has currently 139 million subscribers.

'While there is little question there are more direct-to-consumer services today than ultimately should survive, we have no doubt that Disney+ remains on the short list of products that should prevail longer-term,' Quadrani wrote in a note.

'Our confidence in the resilient success of Disney+ comes from the company's unmatched brand recognition, extensive premium content, and unparalleled ecosystem to market the service.'

'Disney has already shown some disposition to forego short-term revenues in order to develop the streaming business, by pulling content from Netflix once its contract expires at the end of the calendar 2018 film slate,' Quadrani said.

'While Disney management has not yet commented on a specific price, the company has stated that Disney+ will be 'substantially below' the price of Netflix.'

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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