Will Disney Be Able To Break Even With 32 Million Subscribers To Its Own Streaming Service?

By Shawn Rice

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Will Disney Pictures be able to break even with subscribers to its own streaming service? By now, many know that Disney is intending to launch their own streaming service so that they can serve as the exclusive SVOD home to their massive library of film and TV shows.

Following that announcement came news that Disney will be adding Pixar, Marvel, and Star Wars films to their platform. That means all that content will leave their current home at Netflix. Disney’s service is expected to offer around 400-500 movies and around 7,000 episodes of TV.

Netflix has been ramping up its original offerings in an effort to reduce its dependency on licensing content like Disney hits “Zootopia,” “Finding Dory,” and “Rogue One.” Of course, diehard Disney fans will have no qualms joining a service dedicated solely to the movies.

Additionally, Disney will have exclusive new content that will range from live-action movies to TV series. A new report from UBS analysts (via Business Insider) indicates that the Disney system will have to garner a lot of subscribers just to break even. How many? Approximately 32 million.

The report estimates that the studio currently makes at least $2.5 billion from film and TV licensing alone which will effectively vanish with the new service’s exclusivity. If subscribers have to pay around $9 per month, then approximately 32 million will be required to achieve break even status.

To help put that in perspective, Netflix has currently 50 million subscribers domestically after a decade of running. HBO Now sits at 3.5 million, while CBS All Access and Showtime are 4 million combined.

Here are some reactions to the news that Disney will be offering its own streaming service.

Disney’s streaming service could be a beautiful thing for Muppets fans. Maybe the ideal home for new movies & series?

— Aaron Wallace (@aaronwallace) September 10, 2017

I’ll only subscribe to this Disney streaming service if it contains every episode of EPCOT Magazine from the Disney Channel.

— Bryan K (@TOCPE82) September 10, 2017

If Disney gives me an 8 episode, premium live-action Star Wars show on its streaming service day one, I’m there.

— Jesse Tschopp (@jrtschopp) September 7, 2017

dear @Disney & other multimillion dollar corporations

im not paying for 20 different streaming services

seeya on the dark web,@rockcock64

— rockcock64 (@rockcock64) September 7, 2017

Four or five original Disney-branded films will made exclusively for the service, and the same goes for TV. Add that to the promised library of almost 500 Disney films and 7,000 episodes, and you’ve suddenly got a lifetime of content on your hands. Plus, CEO Bob Iger promises more “original short-form content” which they “intend to get more specific about…in the months ahead.”

Only time will tell if Disney will be able to get to 32 million subscribers quickly. It’s hard to imagine that any streaming service can reach over half of Netflix’s domestic subscribers in any fast amount of time, but it never pays to underestimate the house Go to the full article.

Source:: Business 2 Community

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