Disney shocked journalists and competitors alike when it announced its Disney+ SVOD service will cost just $6.99 a month or $69.99 a year:
The new platform will initially be available exclusively in the US, and is set to launch in November. The service will be ad free, breaking with Hulu and ESPN+'s ad-supported models, and subs will be able to download all content across the Disney+ platform to their devices.Disney+ will be both among the least expensive options in the SVOD market and the most desired in terms of its exclusive, original content.a month for SVOD — that means most people have room for another service.
Disney has foregone significant licensing revenue as it pulls back its original content to keep it exclusive to its new service. In pulling licensing deals from Netflix, Disney is projected to walk into an estimatedDisney has also invested a ton in backend tech and ensuring an expansive library of original content, netting operational
of $136 million for the 2018 fiscal year. This costly strategy was likely the only path to SVOD success for the Mouse House, as original and exclusive content are the differentiators in this market.
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