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Will the Pricing of Disney+ Be Competitive?

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Apr. 16 2019, Published 8:14 a.m. ET

Disney’s streaming service

The Walt Disney Company’s (DIS) streaming service, Disney+, will launch in US (SPY) markets in November. The ad-free streaming service will not only provide Disney-branded movies and TV shows but also feature new original programming from its biggest franchises, such as Star Wars, Marvel, Pixar, Disney, and National Geographic.

Disney+ is coming at a time when audiences are increasingly shifting to online video streaming options instead of subscribing to traditional cable channels in a practice popularly known as cord cutting. According to Research and Markets, the worldwide number of paying subscription video on demand subscribers is expected to touch ~777 million by 2023.

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Pricing 

Disney expects to win customers with the attractive pricing of Disney+ at $6.99 per month, which is better than streaming king Netflix’s (NFLX) pricing plan. The monthly subscription price of Disney+ is also lower than Wall Street’s expectation of $7.50 per month. In comparison, Netflix’s Basic plan starts at $8.99 per month and rises incrementally according to the number of screens and resolution. The monthly prices of the Standard and Premium streaming plans are as high as $12.99 and $15.99, respectively.

CBS’s (CBS) CBS All Access and Showtime are accessible at over $6 per month and $11 per month, respectively. CBS is expected to have 25 million US subscribers by 2022, according to CNBC. STARZ PLAY is available for $8.99 per month. Apple hasn’t discussed its pricing details for its upcoming streaming product.

AT&T’s (T) WarnerMedia is making a debut of its streaming service in late 2019, while Comcast’s (CMCSA) NBCUniversal is scheduled to launch its streaming product in early 2020. Discovery’s (DISCA) streaming service is also set to launch in 2020.

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