Adding more subs before the cutting comesīoth Apple TV+ and Disney+ are giving their service away to some consumers as a way to boost total subscribers right at launch. It will take years for Apple TV+ and Disney+ to be profitable. Due to its direct-to-consumer investments, Disney’s profit in Q4 2019 of $1.07 per share was down 28% from the year before. Like Apple, Disney is also spending big on originals: $25 million per episode on some of the original Marvel shows, according to The Hollywood Reporter.

Disney as of June was aiming for 30 million subscribers for Disney+ by 2024, and has since hiked that way up to a range of 60 million to 90 million subs by 2024. (Separately, Disney plans to move all FX shows to Hulu, which brands Hulu as Disney’s more adult streaming app, and sufficiently differentiated from Disney+.) Disney+ is priced at $6.99 a month, which puts it between Apple TV+ ($4.99) and Netflix ($12.99).

Marvel’s last couple “Avengers” movies are about as adult as the Disney+ content gets. The vast library of content on Disney+ is staggering-from Disney Animation to Pixar to Marvel to Lucasfilm to National Geographic, including old classic Disney movies and brand new original shows and movies-but it is all family-friendly, which fits Disney’s brand. (Netflix originals reportedly contribute less than 30% of viewing time on Netflix.) In contrast, Disney+ and Netflix ( NFLX) both have kitchen-sink approaches to content, but even those differ from each other because all of Disney’s ( DIS) content is Disney-owned, while a lot of what is on Netflix is licensed content that Netflix pays to host. Wedbush analyst Dan Ives called the $4.99 price tag a “shocker” that “we loudly applaud.” Wall Street had initially been expecting a price in the $7.99 to $9.99 range. Apple TV+ launched with just seven shows, all of them originals, including “The Morning Show,” “See” and “Dickinson.” It’s a premium approach: a handful of expensive shows (“The Morning Show” budget was reportedly $15 million per episode) with big names, and Apple ( AAPL) wisely priced it super-cheap ($4.99 a month) to make it practically an impulse purchase if you’re interested in one or two of the shows. Rodriguez/Getty Images for Disney)ĭisney+ and Apple TV+ launched in the same month, but that’s about all they have in common.

'The Mandalorian' series will stream exclusively on Disney+ when the service launches on November 12. Executive producers/writers Jon Favreau, Dave Filoni, actors Pedro Pascal, Gina Carano and Carl Weathers of Lucasfilm's 'The Mandalorian' at the Disney+ Global Press Day on Octoin Los Angeles.

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