Analysts say that Disney+ will be a big hit, but not because of the classics

Analysts say that Disney+ will be a big hit, but not because of the classics
On November 12th, Disney+ is scheduled to launch. With a huge fan base, the streaming video service is certain to be a hit, and LoupVentures analysts Gene Munster and Pat Bocchicchio explained why in a recent note to clients. First of all, everyone knows that the Disney name is synonymous with quality entertainment. As Munster and Bocchicchio state in their note to clients, "The most compelling reason to subscribe will be the quality and existing demand of the content."

Besides the classic (and nostalgic) Disney animation, the company has plenty of live-action movies that consumers would love to stream on-demand. Remember, Disney owns the Star Wars franchise, Pixar, 20th Century Fox, (which explains why every episode of The Simpsons will be available on the app from day one), Marvel and more. Priced at $7 a month, or $69.99 a year (which works out to $5.83 a month), the analysts point out that Disney+ is a bargain compared to Netflix at this point, although Disney could eventually raise the cost of the service.


Disney owns a majority stake in Hulu, and combined with its ownership of ABC and ESPN+, the company is expected to sell a package bundling live sports and live television. If the House of Mouse can price this right, Disney+ can compete with anyone including Netflix. The latter has made it clear that it won't bid for sports programming.

Both Munster and Bocchicchio make an interesting point about Disney's original programming. The analysts say that after a brief period of time, it won't be the movies in the Disney Vault that will drive consumers to subscribe; after all, how many times can you watch The Lion King? What will drive growth to Disney+ will be the new content that takes Disney's beloved characters and continues their stories by putting them in new situations and adventures.

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7 Comments

1. libra89

Posts: 2289; Member since: Apr 15, 2016

Didn't think of this but it makes SO much sense.

2. kennybenny

Posts: 216; Member since: Apr 10, 2017

I didn't know Disney owned 20th Century Fox.......

4. AngelicusMaximus

Posts: 725; Member since: Dec 20, 2017

They only closed the deal about a month ago.

3. iloveapps

Posts: 855; Member since: Mar 21, 2019

Now I couldn’t wait for apple tv+

5. cmdacos

Posts: 4248; Member since: Nov 01, 2016

Yay! You can watch mundane Oprah documentaries all day!!

6. ShadowHammer

Posts: 207; Member since: Mar 13, 2015

It's not necessarily about "how many times can YOU watch The Lion King," but instead how many times can your kids. I've seen my kids watch the same full length movie three times in one day. I might pay for the Disney service just so my kids have a steady stream. Although truthfully, Netflix already provides them with practically unlimited content. I haven't been super impressed with a lot of Disney's newest content, so I'm not sure how motivated I am to pay a monthly fee for it. Plus, how many streaming services are people willing to pay for each month? At certain point, you will be paying as much as for cable or satellite. Diminishing returns, or threshold surpassed perhaps.

7. Valdomero

Posts: 697; Member since: Nov 13, 2012

True, Google tv is the sole example of what you just described, they had to bring up the price to get some earnings, at their price point is equal to Cable TV, so not worth at all. Personally, I'd pay for Netflix (original series and movies, some are crap, but others are true jewels), Crunchyroll (Legal anime, I can go to shady websites and watch them free, having to close like 5 pop-ups every 2 minutes turns me down) and Disney+ (c´mon, Disney classic series and movies, + every other company they bought? deal!). HBO and the likes are really not worth, unless you're into Game of Thrones stuff... you can simply buy it for the month they're airing that stuff and cancel once you're done.

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