It has been a week since Disney released all the details for its direct-to-consumer service Disney+. Netflix doesn’t think the new service will impact its business. However, the company could be underestimating Disney+’s impact on it and the rest of the SVOD market.
Chapter 1: Netflix Q1 2019 results (1:00)
Netflix managed to top the performance it put up in Q4 2018. The company exceeded its forecast for subscriber growth by 10%.
Chapter 2: The impact of Disney+ on Netflix (3:30)
Netflix management does not think that Disney+ will have a material effect on its fortunes. However, there certainly looks like it could impact growth in the fourth and first quarters.
Chapter 3: How the $7 price point is a problem for competitors (12:00)
Will was surprised at the $7 price point announced for Disney+. We discuss the likely impact such a low price will have on Netflix, WarnerMedia, and Apple TV+.
Chapter 4: How long can the $7 price last? (15:50)
With Disney+ $3 cheaper than Netflix and $8 cheaper than HBO Now, the price is sure to rise. How long will Disney wait?
Chapter 5: How Disney+ gets to 60M-90M subscribers (19:00)
If Disney+ mainly appeals to homes with children, it will be challenging to get to the same penetration as Netflix in the US. However, Disney+ will be launched globally.