Disney's New Streaming Service Will Cost "Substantially" Less Than Netflix

Disney's New Streaming Service Will Cost

Disney plans to price its streaming service below what Netflix charges based on the fact that it will have less content initially, Iger said.

Earlier this week, CNBC reported that Disney had been in talks with 21st Century Fox about acquiring a bulk of company's entertainment assets, but Lowell Singer, Disney's VP of investor relations, quickly jumped in to say the company wouldn't comment on what it called "press speculation".

In addition to the new Star Wars series, Iger also revealed that other live-action series based on Marvel shows, a new "Monsters Inc." show and "High School the Musical" show will be airing on Disney streaming service.

Netflix now offers three different subscription tiers to US subscribers: a basic plan for $7.99 a month, a premium plan at $10.99, and an ultra premium plan for $13.99. It does, however, mean that Disney will be increasing the price as the catalogue grows. Iger did take a few minutes to speak out pricing and content on the network, which is expected to launch in 2019.

Of course, for us fans, our minds immediately went to the Marvel Cinematic Universe.

It's turning into a busy day for Star Wars news, and we're still a month away from the release of Star Wars: The Last Jedi.

Fourth-quarter profit at Disney's cable TV unit, the company's single biggest profit contributor, slumped 1.2 per cent to $1.24 billion, hurt by weak advertising sales and higher programming costs for baseball and football at ESPN. But "affiliate revenue" from cable and satellite-TV operators increased. Further ESPN subscriber and ad revenue losses were also a factor in the decline. Disney owns minority stakes in both. Overall revenues for the segment decreased 3 per cent to $5.5 billion.

Disney's movie studio was hurt by the underperformance of "Cars 3" and a write-off of almost $98 million on the animated movie "Gigantic", which was previously scheduled for 2020 but was cancelled.

Despite some box office hits, Disney is having a rough year financially. The drop was also caused in part by a profitable sale of classic "Star Wars" movies to television outlets past year. That's primarily because previous year was exceptionally good for Disney's earnings, but all the same, Disney has to careful, especially when making the sort of substantial, expensive, long-term investments like this deal would be.

Hurricane Irma had an effect on Disney's domestic resort and cruise business, the company said. Parks had to close for two days because of Hurricane Irma, which also forced the cancellation of three Disney Cruise Line sailings and the shortening of two others.

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