The Walt Disney Co. on Thursday unveiled details of its pending online video platform, showcasing its robust content library and new exclusive offerings as a key differentiator as the entertainment giant prepares to enter the highly competitive streaming industry.
Called Disney+, the service is slated to be released on November 12 and will cost $6.99 per month -- or an annual option of $69.99. It will house Disney’s own intellectual property -- eventually including classic films like the "Lion King" and "Snow White" -- as well as offerings from Pixar, Star Wars, Marvel and property acquired as part of the recent $71.3 billion purchase of key 21st Century Fox assets, like "The Simpsons" and National Geographic. The deal created the new Fox, which is the parent of FOX Business and Fox News.
“This is an exciting time [but] it’s also a challenging time and the dynamism of the marketplace is both powerful and permanent,” CEO Bob Iger told investors at the annual meeting. “We’re starting from a position of strength, confidence and unbridled optimism.”
The platform operates much like competitor Netflix, according to a demo of a working prototype, with prominent boxes at the top of the application directing consumers to specific pages for each of Disney's major brands: Disney, Pixar, Marvel, Star Wars and National Geographic. And like Netflix, users will be able to download the content and access it offline.
Offerings once available on Netflix will now move exclusively to Disney+, with "Captain Marvel" being the first new major release to be available solely on the product. And on top of popular "Star Wars" and Marvel films, Disney is creating custom content for its streaming service based on those universes and others. Some of those offerings will be available immediately, while others will be rolled out once the product launches.
The company is working with device partners to offer the service on a variety of platforms. Currently, Disney has deals with RokuTV and PlayStation 4, according to streaming president Michael Paull.
We're "confident by the time we launch we will have a full array of device platform partnerships in place," he told investors.
Disney plans to invest heavily in the product, positioning it as one of the company’s most significant business endeavors, alongside its film studio and theme parks.
The Burbank, California-based company expects to reach between 60 and 90 million subscribers by 2024, with the majority of customers eventually coming from outside the U.S. The cash investment for fiscal year 2020 will be roughly $1 billion, rising to the mid-$2 billion by fiscal year 2024. Disney expects operating losses to peak between fiscal years 2020 and 2022, eventually becoming profitable in 2024.