A Whole New World: Disney streaming debuts with hit brands

A Whole New World: Disney streaming debuts with hit brands

NEW YORK — Disney will sprinkle its pixie dust on the streaming arena Tuesday, as its Disney Plus service debuts with an arsenal of marquee franchises including Marvel and Star Wars, original series with a built-in fan base and a cheap price to boot.

The $7-a-month commercial-free service is poised to set the standard for other services like WarnerMedia’s HBO Max and NBCUniversal’s Peacock to follow, as major media companies behind hit TV shows and movies seek to siphon the subscription revenue now going to Netflix and other streaming giants.

Disney’s properties speak to its strengths. Besides classic characters such as Snow White and Pinocchio, Disney has Pixar, Marvel, Star Wars and National Geographic — big names that most people would recognize. Disney Plus will also have all 30 past seasons of “The Simpsons.” Original shows include “The Mandalorian,” set in the Star Wars universe, and one on the Marvel character Loki.

Melissa Knerr, 26, a criminal defence attorney in Springfield, Missouri, already has Hulu, Netflix and Amazon Prime and wasn’t sure she wanted to pay for another one. She said she was swayed by Disney Plus’s price tag and its “sheer amount of content.”

“I really love both the Star Wars and Marvel franchises and I grew up watching classic Disney shows and movies so I do think there will be enough content for me,” she said.

Marlina Yates, who works in marketing in Kansas City, said she signed up because of her husband’s enthusiasm about the Star Wars series “The Mandalorian” and her daughter’s “love affair with princesses and everything Disney.”

Disney Plus’s $7 a month price is about half of the $13 Netflix charges for its most popular plan, and there are discounts for paying for a full year up front. Disney is also offering a $13 package bundling Disney Plus with two other services it owns, Hulu and ESPN Plus. That’s $5 cheaper than signing up for each one individually.

Everything won’t be available to stream right away, though, as Disney needs to wait for existing deals with rival services to expire. Recent movies missing at launch include the animated Pixar movie “Coco” and the live-action “Beauty and the Beast.” Others like “Maleficent: Mistress of Evil” haven’t been released for streaming yet. Disney expects 620 movies and 10,000 TV episodes by 2024, up from 500 movies and 7,500 episodes on Tuesday.

Disney has said that it is losing about $150 million in licensing revenue in the most recent fiscal year from terminating deals with Netflix and other services. But Disney is betting that what it makes through subscriptions will more than make up for that — at least eventually.

Disney is boosting its subscription base initially with heavy promos, much as Apple TV Plus has done and HBO Max and Peacock plan to do. Members of Disney’s free D23 fan club were eligible to buy three years of Disney Plus service up front for the price of two years. Customers of some Verizon wireless and home-internet plans can get a year free.

The hope is that subscribers will stick around once they see what the service offers.

Long-term success is by no means guaranteed. With a slew of services launching, subscription fees can add up quickly. Consumers might be reluctant to drop an existing service such as Netflix or Amazon Prime to pay for something untested.

“I can’t keep up with so many services. It gets expensive,” said William Pearson, a Drexel University student who describes himself as a “massive” Marvel fan but already pays for Netflix, HBO and the DC Comics streaming service.

But compared with other newcomers, experts believe Disney will have no problem gaining — and keeping — the 60 million to 90 million worldwide subscribers it is targeting for 2024. It took Netflix twice as long to get to 90 million.

“Disney Plus has a gigantic array of content and a library that’s unmatched, so it feels like an easy addition for consumers to get a gigantic library at that low price,” said Tim Hanlon, CEO of Vertere Group.

Bernie McTernan, internet and media analyst at Rosenblatt Securities, said Apple’s venture into streaming, Apple TV Plus, has to build brand recognition for its new shows, while viewers may have difficulties seeing what HBO Max offers beyond the standard HBO subscription.

Disney said it was pleased with a recent test in the Netherlands, in which consumers got to try the service for free, without original content or full library of classics.

“The service connected with users across all four quadrants, male and female, adults and kids, driven by the breadth of our content and the affinity people have with it,” Disney CEO Bob Iger told financial analysts Thursday.

Connor Clifton, 29, from Houston, Texas, said he is looking forward to “The Mandalorian” Star Wars series as well as catching up on recent Pixar films.

“Paying for individual channels is frustrating,” he said, “but I want to see the content so I’m willing to pay for it.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer teacher Janelle Van Tetering had her students write letters to attach to Blankets of Hope, which will be donated to the Mustard Seed. (Contributed photo)
Red Deer teacher, students donate ‘Blankets of Hope’ to those in need

A Red Deer teacher and her students are giving warm blankets and… Continue reading

RCMP have charged a Sylvan Lake man for allegedly defrauding five people of more than $100,000.
Advocate file photo
20-year-old woman killed in collision: Blackfalds RCMP

A 20-year-old woman was killed in a collision on Saturday, says Blackfalds… Continue reading

Patrick Malkin, co-owner of The Granary Kitchen, says he wants the provincial government to lift COVID-19 restrictions that shutdown in-person dining. (File photo by Advocate staff)
Red Deer restaurant owner ‘frustrated’ in-person dining restrictions are still in place

Dr. Deena Hinshaw announced the restrictions won’t yet be eased this past Thursday

As of Friday, Alberta has under 10,000 active COVID-19 cases. (Image courtesy CDC)
Alberta identifies 573 new COVID-19 cases, 13 deaths on Saturday

There are currently 9,727 active cases of the virus in the province

A firetruck sits in front of a home on Harvey Close in Red Deer Saturday afternoon. (Photo by Sean McIntosh/Advocate staff)
Firefighters respond to Red Deer fire

Red Deer firefighters responded to a blaze in the north part of… Continue reading

Terrance Josephson of the Princeton Posse, at left, and Tyson Conroy of the Summerland Steam clash during a Junior B hockey game at the Summerland Arena in the early spring of 2020. (John Arendt - Summerland Review)
QUIZ: How much do you know about hockey?

Test your knowledge of Canada’s national winter sport

A woman injects herself with crack cocaine at a supervised consumption site Friday, Jan. 22, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Drug users at greater risk of dying as services scale back in second wave of COVID-19

OTTAWA — Under fluorescent lights, Wendy Muckle surveys the supervised consumption site… Continue reading

The Canada Revenue Agency (CRA) headquarters Connaught Building is pictured in Ottawa on Monday, Aug. 17, 2020. nbsp; THE CANADIAN PRESS/Sean Kilpatrick
Taxpayers’ watchdog sees complaints spike, raising worries about pandemic tax season

OTTAWA — Canada’s taxpayers’ ombudsperson says his office has seen a steep… Continue reading

Wet'suwet'en supporters and Coastal GasLink opponents continue to protest outside the B.C. Legislature in Victoria, B.C., on Thursday, February 27, 2020. THE CANADIAN PRESS/Chad Hipolito
‘We’re still in it’: Wet’suwet’en push forward on rights recognition

Tensions had reached a boiling point over a natural gas pipeline in… Continue reading

An Uber driver's vehicle is seen after the company launched service, in Vancouver, Friday, Jan. 24, 2020. Several taxi companies have lost a court bid to run Uber and Lyft off the road in British Columbia. THE CANADIAN PRESS/Darryl Dyck
Taxi companies lose court bid to quash Uber, Lyft approvals in British Columbia

VANCOUVER — Several Metro Vancouver taxi companies have lost a court bid… Continue reading

Lights on an internet switch illuminate a network cable in an office in Ottawa, Thursday, February 10, 2011. A Federal Court is ordering Canada's internet service providers to block websites for a company that's offering pirated television streaming online. THE CANADIAN PRESS/Adrian Wyld
‘Deeply disturbing:’ Nunavut internet still slower, more costly than rest of country

IQALUIT, Nunavut — In Nunavut, it’s not unusual for the internet to… Continue reading

RCMP say missing teen Hope Tivendale has been found. (File photo by Advocate staff)
No foul play suspected after burned body of homeless person found in North Vancouver

VANCOUVER — A burned body, believed to be of a homeless person,… Continue reading

The central zone experienced a spike in the number of COVID-19 cases Thursday, rising from 454 to 508 active cases over the past 24 hours, with 10 people in hospital. (THE CANADIAN PRESS/Darryl Dyck)
Spartan Bioscience says Health Canada has approved its rapid COVID-19 test

TORONTO — An Ottawa company says it’s received approval from Health Canada… Continue reading

Most Read