Disney May Offer “Packages” For Their Streaming Channels

NEW YORK, NY - NOVEMBER 27: (L to R) Mickey Mouse and chief executive officer and chairman of The Walt Disney Company Bob Iger prepare to ring the opening bell at the New York Stock Exchange (NYSE), November 27, 2017 in New York City. Disney is marking the company's 60th anniversary as a listed company on the NYSE. (Drew Angerer/Getty Images)

At the Second Quarter earnings call Bob Iger discussed several things, including what Disney is considering for the future of their streaming services.

Looking towards the future Disney will have three different services available: An ESPN streaming service, the Disney Play family service and Hulu.

Their new ESPN Streaming Service is off to a healthy start and is “exceeding expectations” according to Iger:

I also want to note the encouraging initial performance of our ESPN+ service, which launched to great reviews and enthusiasm earlier this year. It’s still early days, but conversion rates from free trials to paid subscriptions are strong, and subscription growth is exceeding our expectations.

The second service Disney will offer is the upcoming Disney Play service. Touted as a “family friendly” streaming service, it will offer content geared at the family demographic. There are several projects already being developed specifically for Disney Play including the live-action Lady and the Tramp and a holiday movie Noelle. Shows based on Monsters Inc. and High School Musical are also in production. This new service will also be the home to theatrical release movies once they are ready to move onto streaming.

Finally, with the Fox purchase, Disney will have an over 60% ownership stake in Hulu. Many people speculated about where Disney would put it’s not so “family friendly” content and by the sounds of it Hulu is where those properties will be headed.

Why does this matter?

It matters because Disney is poised to own 3 distinct streaming services geared at three different demographics. Sports, Family, and General/more Adult oriented content. The plan is to offer them separately at a lower rate than their competitors and to possibly offer them in packages for customers that want more than one of the services. Saving even more money for potential subscribers.

So rather than one gigantic aggregated play, we’re going to bring to market what we’ve already brought to market; Sports play, I’ll call it Disney play, which is more family oriented, and then, of course, there’s Hulu. And they will basically be designed to attract different tastes and different segment or audience demographics. If a consumer wants all three, ultimately, we see an opportunity to package them from a pricing perspective. But it could be that a consumer just wants sports or just wants family or just wants the Hulu offering and we want to be able to offer that kind of flexibility to consumers because that’s how we feel what consumer behavior demands in today’s environment.

Of course a lot of this plan is all dependent on the completion of the Fox acquisition. But come next year customers will have new options and potential money saving packages to choose from.

What do you think? Comment and let us know.

Source: The Motley Fool

Image Source: The Observer

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