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Disney CEO says their streaming service will be cheaper than Netflix

David Lumb

Back in August during an earnings call, Disney stated that it would start pulling its content off Netflix in order to start a streaming service of its own. The company currently plans to launch it sometime in 2019 and include its expansive film library along with media from its various channels. To compete with Netflix, Disney's streaming service will be cheaper, the company's chairman revealed in yesterday's quarterly earnings call. Partially because it'll have less content, at least to start.

"I can say that our plan on the Disney side is to price this substantially below where Netflix is. That is in part reflective of the fact that it will have substantially less volume," Robert A. Iger, Chairman and CEO of The Walt Disney Company said. "It'll have a lot of high quality because of the brands and the franchises that will be on it that we've talked about. But it'll simply launch with less volume, and the price will reflect that."

The company's goal after launching the service will be to attract subscribers. Iger mentioned the potential in offers to folks with a Disney credit card, members of its various clubs and frequent visitors to its theme parks. As the service's content library grows -- say, with an upcoming live-action Star Wars show -- the company could "have the pricing over time reflect the added volume," Iger said.

Per their prior agreement, Netflix users will still have access to Disney films through the end of 2019, including movies opening in theaters throughout 2018. Disney's ESPN streaming service will launch early next year and aims to feature 10,000 games annually.

Walt Disney Co quarterly and year-end earnings call (transcript)