Disney threw a glove with content.
The company has completed three and a half hours of investor presentation about its plans for an aggressive transition to the arena directly to the consumer. Street analysts and reporters in the room.
The $ 6.99 monthly price in its Disney Plus Service was viewed as a major shot in Netflix. Disney plans to serve gilded brands, a deep cradle of movies and TV shows and original high-end products at a price that is very attractive even for value-oriented consumers. Netflix's current plans range from $ 9 to $ 13 a month.
"We are developing a product that we want to be as affordable as possible for many consumers," said Disney's chairman Bob Eger during the final session. 1
"Obviously, the strategy is extremely important for us," said Iger. "We must be very serious and be in it. We believe this is the best way to succeed."
The long presentation could not have been more focused on emphasizing that Disney has a seemingly unlucky list of brands – Disney , Pixar, Marvel, Star Wars and National Geographic –
"The fact that we have brands that are of great importance is the greatest differentiator of our service," said Kevin Meyer, Disney's director of direct sales and international affairs. 39].
Iger argued that while Disney is experiencing a large number of transition In the production of films and television programs on the arena "directly to the consumer," we begin with a position of strength, confidence and unbridled optimism. "
Disney also stressed that all Disney Plus content would be bootable for offline viewing as long as The user remains an active subscriber. This is a major plus for the Disney Plus target audience of young children.
Disney predicts that Disney Plus will have 60 million to 90 million subscribers around the world by 2024, with one third of those coming from the United States saying that it expects to spend just over $ 1 billion on original content for Disney Plus in its fiscal 2020, rising to a range of 2.5 billion dollars by 2024.
Disney will make another $ 1.5 billion in fiscal 2020 for content licensing, which will debute on other platforms.
Disney Chief Financial Officer Christine McCarthy said operating losses for Disney Plus are expected to peak between 2020 and 2022, with profits coming in 2024.
For several years, the aggressive early investments that we make will be reflected, "she said. "We want to create a business for long-term success."
The presentation featured a parade of executives and several creative talents, including John Favroux, a veteran director who meets the long-awaited live performance of the studio. King of the Lion "From the original series Marvel- and Star Wars to a series of remakes and pins from characters in Disney's vast repository, the presentation made it clear that Disney has an arsenal to bring traditional Hollywood to the new era of the movie.
"Each of these series will be equal to the quality of films and stories about the scenes," said Kevin Feige, president of the Marvel Studios, who showed a clip of the future "Avengers: Endgame", which will eventually be available to Disney Plus subscribers
Feige emphasized. the creative potential of creating such a wide canvas on which you can work with original series. "They will change and develop the existing characters and introduce new ones." He said that the storylines of Disney Plus and Marvel films will come together and become part of an important "canon" for characters and franchises that will "substantially affect Marvel Cinematic Universe.
The presentation also offered a first look at the Disney Plus interface on several devices. The look and feel were colorful and intuitive, with a promise to offer users many ways to search for content and personalize the service to their own taste.
"We will have a full range of affiliate relationships between device platforms," said Michael Polt, President of Disney Streaming Service.
The presentation emphasized the importance of the acquisition of Disney's 21st Century Fox as it plans to create Disney Plus. Disney Plus will become the exclusive Simpson stream house, a move from the previous Fox strategy, making the venerable multiplier available through the FXX Linear jailbreak and FXNow streaming application. This ad was featured in the awesome Simpson animated movie, in which Homer Simpson and seven tried at the ears of Mickey Mouse when they stood next to two statues – one of Darth Vader, and the second from Diesha Iger's main – and a framed photo of Fox Baron Rupert Murdoch could be seen in the trash can.
The presentation opened with a nearly 15-minute video that followed Disney's origins – including the famous Walt Disney citation "It all started with a mouse" – to this day, including the Fox brand from The X-Files and The American Horror History to The Sound of Music "and" Bohemian Rhapsody ". The coil also demonstrated the breadth of Disney content through linear channels, ABC News operations and international assets such as Star India
Eger noted that Disney's benefits include the "evergreen" nature of classical names in its repository. "Grandma and grandfather took me to see Cinderella, when I was a little boy," said Iger. "This past Christmas I was watching this movie with my grandson." He said that "the perfect illustration of what" evergreens "means for us and how much value it generates for our shareholders."
As expected, Eger and his lieutenants laid down the development of a direct consumer strategy that spans around three main areas: the ESPN Plus, which began last year; Hulu, in which Disney now owns most shares; and Disney Plus.
One of the great moves for Disney, going "all in", as Eiger said, on Disney Plus was the decision to make all the classic animated titles of Disney, since 1937, "Snow White and Seven Dwarfs," available on a permanent basis. In the past, Disney has kept a number of shelf names at any given time to create demand.
Disney will also go through the arches of the Disney Channel to make all their films and original series for television films. one fell swoop. A new twist on the High School Musical franchise is scheduled as one of the original series for Disney Plus.
"Never before, our content was not as wide, convenient, or permanently available as it would be on Disney Plus," Mayer
Mayer said that the company was thought to be "a fundamental change in the market and growing consumer demand for streaming services " original series plus movies and documentaries available at launch. Until the first year they expect more than 25 original series and 10 original films and documentaries. She called it "an unsurpassed living, breathable ecosystem of content."
Disney expects to release Disney Plus in Western Europe and parts of Asia since the first quarter of next year. Latin America will begin in 2021.
The Disney Brass promised to use every "point of contact" that is possible because of the company's content and the resources of the theme park to facilitate the availability of Disney Plus. , said that the promo blitz would represent "a synergistic scale campaign that is unprecedented in Walt Disney's history."
Lifting the curtain for Disney Plus became the center of the presentation on Thursday. But McCarthy has suggested growth and financial projections for ESPN Plus and Hulu as well.
ESPN Plus is expected to reach 8 million to 12 million domestic subscribers by 2024. Operating losses for this year and next are expected to be about $ 650 million. It is expected that by 2023 profitability is expected by 2023.  It is expected that by 2024 Hulu will attract 40 million to 60 million domestic subscribers. Operating losses for Hulu this year will reach $ 1.5 billion, and profitability will be reduced to 2023 or 2024, according to McCarthy.
Disney is likely to take steps to offer three discounted services. But Igger said that they decided not to sell them just as a package, because it seems to be inconsistent with what consumers want in the streaming platform. The Hulu offer menu includes a Hulu Live service costing $ 45 a month, which includes a package of linear cable channels.
"We believe that consumers should have more flexibility," said Iger. "It would not be right to make it in this space to give them a bold link that looks more like traditional media." in 2021, retired as CEO, as noted earlier. Igger said that his schedule had not changed, and that the board of directors of Disney was "busy" in search of his successor.
"I have been the general director since October 2005," he said. – There is time for everything. 2021 is the time when I finally refuse. "