Disney's Streaming Service Won't Compete with Netflix
Disney (NYSE: DIS) CEO Bob Iger gave a few more details about Disney's forthcoming direct-to-consumer streaming service during the company's fourth quarter earnings call. The streaming service will include films from Disney, Pixar, Marvel, and Star Wars. The movie giant also plans to produce five original films per year exclusively for the streaming service, as well as a number of original series based on Disney's winning films.
Iger also said Disney will price the service "substantially below" Netflix's (NASDAQ: NFLX) pricing. He conceded that while the company owns a lot of high quality content, there will be substantially less volume on the new service compared to Netflix. Iger's goal is to attract as many fans to the service as possible.
He also practically denied that the new service would be a "Netflix killer." Even with Disney's attractive content library, Netflix has a budget and a brand that make it tough to overcome. The good news for Disney investors is that there's absolutely no need for Disney's direct-to-consumer offering to compete with Netflix.
Source: Fool.com
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