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Disney to charge less than Netflix for its streaming service

Disney to charge less than Netflix for its streaming service

This week, Disney CEO also announced that they plan on making sure their streaming service is "substantially below" the current price of Netflix, which now sits at a $10.99 a month price point for United States subscribers, and will likely increase in the coming years. Disney CEO Bob Iger made the announcement on the company's fourth quarter earnings call.

"That is in part reflective of the fact that we'll have substantially less volume".

The company plans on allowing commercials for its sports streaming app, but there are no plans to "have the programming that airs in the direct-to-consumer service interrupted by commercials", Iger says, adding sponsored programs could be a possibility.

The streaming service will be the exclusive home for subscription VOD viewing of live action and animated films from Disney, Pixar, Lucasfilm and Marvel.

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They include a live-action Star Wars series, plus television series based on High School Musical and Monsters Inc. It should be noted that these films are coming from the studios and not Disney Channel.

Currently, Netflix plans start at $7.99 per month and jump to $10.99 for HD and $13.99 for Ultra HD plans.

"It's becoming an internet TV world", Hastings said, "which presents both challenges and opportunities for Netflix as we strive to earn screen time".

Disney is convinced that we're all going to make the migration though - so convinced that they are apparently spending over $300 million a year on this endeavour. Expect films with bigger scope than your typical Disney Channel Original Movie, but not Avengers 6 either. Marvel's New Warrior could be one of the many series to come to the Disney streaming service.

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Content Filtering: The service will not feature "R" rated content. Netflix has five shows (Daredevil, Jessica Jones, Luke Cage, Iron Fist, The Punisher) and the Defenders miniseries.

Device support is unclear, though Disney has referred to the upcoming service as an "app" on several occasions, suggesting it could be streamed to smartphones, tablets, computers, TVs, and other internet-connected devices capable of running applications. He said ABC Productions could end up creating content for the Disney-branded service. It will also have original series and should be much cheaper than Netflix.

The launch of this new service is still two years away, so we're obviously still waiting for more information.

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