Disney+ to attract subscribers
The Walt Disney Company (DIS) is soon going to launch its streaming service, Disney+, at an attractive price of $6.99 per month. Disney is planning to offer a variety of new TV shows and iconic films from its most popular brands in an effort to grow its subscriber base amid competition from the world’s leader in film and TV streaming, Netflix (NFLX).
Disney expects to attract as many as 90 million subscribers to Disney+ by fiscal 2024. In comparison, Netflix has a global paid subscriber base of 139.3 million as of the end of the fourth quarter and is expected to reach 148.2 million subscribers at the end of the first quarter.
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Disney’s investment in original content
Disney is planning to invest over $1 billion in original programming in fiscal 2020 and ~$2 billion by fiscal 2024, as the company plans to win more subscribers to combat its existing digital rivals Netflix, Amazon’s (AMZN) Prime Video, Hulu, and AT&T’s (T) HBO Now. AT&T’s WarnerMedia is also rolling out its streaming service in late 2019, while Comcast’s (CMCSA) NBCUniversal is debuting its streaming service in early 2020.
Netflix spent $3 billion on original content in 2014 and invested more than $8 billion in original programming in 2018. Like Netflix, Amazon spent more than $4 billion on content in 2018. Hulu reportedly spent ~$2.5 billion on content in the year—the same as in 2017.
The global over-the-top content market is expected to reach $245.8 billion by 2028, according to a report by Future Market Insights.