Netflix costs for its standard HD plan. Disney has signaled that it intends for the platform to be much cheaper than its rival.
It has also hinted that it is interested in bundling Disney+ with ESPN+ and Hulu, which it owns a 60% stake in. However, it’s unclear if Disney+ will coexist with these other services, particularly considering 40% of Hulu is owned by Comcast (30%) and AT&T (10%).
Disney is also entering the streaming space at a time when competition is high. Netflix already has around 139 million subscribers, while HBO’s subscription base is estimated to be slightly north of that number.
Not to mention, Comcast, Warner Media and Apple have plans to launch their own standalone services.
Still, Disney has an incredible archive of content and a very strong box office presence. Now that it is no longer licensing its newly released films to other services, customers will have to either buy the DVD or Blu-Ray release or sign up for Disney+ to see the content.
Disney also has a very appealing slate of family-friendly brands, something that most of the other services do not have. This could differentiate it from its competitors and entice families with children to purchase the subscription.
Thursday should bring more clarity for investors and the consumers eagerly awaiting the services release.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.