Disney+'s Value Proposition Just Got Even Stronger

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Just in case it wasn't clear by now, Disney (NYSE: DIS) is going for the jugular with Disney+, the House of Mouse’s forthcoming video-streaming service. As more details about Disney+ come out, it’s becoming obvious that the company will be offering an incredible value proposition for the $7-per-month service. That price comes down even further when factoring in annual subscriptions ($70 per year) and/or bundling ($13 per month for ESPN+, Disney+, and Hulu).” data-reactid=”11″>Just in case it wasn’t clear by now, Disney (NYSE: DIS) is going for the jugular with Disney+, the House of Mouse’s forthcoming video-streaming service. As more details about Disney+ come out, it’s becoming obvious that the company will be offering an incredible value proposition for the $7-per-month service. That price comes down even further when factoring in annual subscriptions ($70 per year) and/or bundling ($13 per month for ESPN+, Disney+, and Hulu).

Disney hosted its biennial D23 expo over the weekend and provided even more reasons to sign up — with some attendees already doing precisely that.

Less than half the price of Netflix Premium

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="At an event during the expo, Disney not only announced&nbsp;a whole new slate of original content, but the company also shared more details about what's included in Disney+. Subscribers will have unlimited downloads on up to 10 mobile devices and 4K Ultra HD content resolution, and will be able to stream concurrently on up to four devices. Disney+ will also support Dolby Vision and Dolby Atmos. All of these features are included and come at no additional cost.” data-reactid=”16″>At an event during the expo, Disney not only announced a whole new slate of original content, but the company also shared more details about what’s included in Disney+. Subscribers will have unlimited downloads on up to 10 mobile devices and 4K Ultra HD content resolution, and will be able to stream concurrently on up to four devices. Disney+ will also support Dolby Vision and Dolby Atmos. All of these features are included and come at no additional cost.

More

Disney’s direct-to-consumer chief Kevin Mayer shows off Disney+ at D23. Image source: Disney.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In other words, that makes the feature set more comparable to Netflix‘s (NASDAQ: NFLX) most expensive Premium plan, which costs&nbsp;$16 per month — more than twice what Disney+ will cost. Even Netflix’s cheapest plan will be more expensive than Disney+ while offering far fewer features.” data-reactid=”29″>In other words, that makes the feature set more comparable to Netflix‘s (NASDAQ: NFLX) most expensive Premium plan, which costs $16 per month — more than twice what Disney+ will cost. Even Netflix’s cheapest plan will be more expensive than Disney+ while offering far fewer features.

Data sources: Disney and Netflix.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Recent estimates from eMarketer suggest that Netflix's U.S. market share is slipping modestly, just as multiple competitors prepare to jump into the over-the-top (OTT) streaming market with competing services. Disney’s aforementioned bundle "probably comes closest" to becoming a "Netflix killer," according to eMarketer analyst Eric Haggstrom.” data-reactid=”33″>Recent estimates from eMarketer suggest that Netflix’s U.S. market share is slipping modestly, just as multiple competitors prepare to jump into the over-the-top (OTT) streaming market with competing services. Disney’s aforementioned bundle “probably comes closest” to becoming a “Netflix killer,” according to eMarketer analyst Eric Haggstrom.

Investment bank Needham, which rates Disney shares at hold, believes that the company will be able to poach many of Netflix’s subscribers, as consumers in the U.S. “have shown a reluctance to add” more video services that add to their monthly budgets. Morgan Stanley analyst Benjamin Swinburne estimates that within five years, Disney will have over 130 million total subscribers across all of its OTT services. The entertainment giant currently has just over 30 million paid subscribers between ESPN+ and Hulu.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Check out "20 of the Top Stocks to Buy in 2019 (Including the 2 Every Investor Should Own)."” data-reactid=”35″>Check out “20 of the Top Stocks to Buy in 2019 (Including the 2 Every Investor Should Own).”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More From The Motley Fool” data-reactid=”36″>More From The Motley Fool

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Evan Niu, CFA owns shares of Netflix and Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool has the following options: long January 2021 $60 calls on Walt Disney and short October 2019 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.” data-reactid=”44″>Evan Niu, CFA owns shares of Netflix and Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool has the following options: long January 2021 $60 calls on Walt Disney and short October 2019 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article was originally published on Fool.com” data-reactid=”45″>This article was originally published on Fool.com

Read More