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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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