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Content giant Disney has unveiled what it presumably hopes will be a Netflix-busting bundle of Disney+ ESPN+ and Hulu in the US.
Disney+, the core streaming service for Disney movies and other video content, had previously been announced at a cost of $7 per month. Disney also owns the majority of sports content network ESPN, and general TV content service Hulu, so it’s bundling them together with Disney+ for a grand total monthly cost of $13 – five bucks less then they cost individually and coincidently exactly the same as regular Netflix costs in the US.
“I’m pleased to announce that in the United States, consumers will be able to subscribe to a bundle of Disney+, ESPN+ and ad-supported Hulu for $12.99 a month,” said Disney CEO Bob Iger on the company’s recent earnings call. “The bundle will be available on our November 12 launch date.”
Commentary on this seems to be universally positive, with many observing that it’s very good value for money.
Think of the IP that ESPN + Hulu + Disney offers. That $13 month is, relatively speaking, extremely affordable and a no brainer as a consumer choice. https://t.co/7ayHpVbv22
— Luke Thomas (@lthomasnews) August 6, 2019
“The move throws down the gauntlet to Netflix and other rival services,” said Tech, Media and Telco Analyst Paolo Pescatore. “For sure it is competitively priced and seeks to reduce fragmentation. Initially, it seems that Disney is looking for scale but will need to increase revenue to recoup the significant investment. Consumers have some tough decisions ahead as they can’t sign up to all the streaming services.”
At that price, I can only see this as a loss-leader to capture a significant portion of the streaming market before raising fees incrementally.
And if you think that won’t work, you’ve never been a parent at 7am with toddler screaming about missing his favorite show. https://t.co/nRW1ewspNs
— Cameron Soran (@cameronsoran) August 6, 2019
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