Disney to charge less than Netflix for its streaming service

Star Wars Obi Wan Kenobi movie

CREDIT Lucasfilm Kobal REX Shutterstock

Before Disney acquired Lucasfilm, George Lucas and Rick McCallum had been working a live action TV series with the title Star Wars: Underworld.

Those are the first specific programming announcements Disney has made about the service. Some of this was offset by higher ABC network advertising rates. "It will be substantially below Netflix because we'll have substantially less volume".

Netflix now offers three different subscription tiers to USA subscribers: a basic plan for $7.99 a month, a premium plan at $10.99, and an ultra premium plan for $13.99.

The service will launch with "a lot of high quality" content and will increase its price as the platform adds titles over time.

The latest financial report notes that Disney had an "unexpected" drop in profits and also confirms that ESPN is still losing subscribers by the millions, Reuters reported. Iger did say that the new app will be able to "stream our channels on an authenticated basis and subscribe to ESPN+ for additional sports coverage, including thousands of live sporting events". Hopefully the bar will be set higher when Disneys Marvel shows make the jump to streaming. Capital spending totalled $3.63 billion in the year just ended. Yes, another streaming service. Disney owns minority stakes in both. Revenue slipped to $12.8 billion, compared with projections of $13.3 billion. For the year, profit and revenue both slumped 1 per cent.

Johnson helmed "Star Wars: The Last Jedi", which is due out next month.

One analyst is also optimistic on the future prospects of other Disney businesses.

Theme parks continue to be Disney's bright spot, with growth at the Shanghai Disney Resort and Disneyland Paris. Some results were impacted by the hurricane in Florida, which included closing Walt Disney World for two days.

This disclosure came on its earnings call to wrap up the company's fiscal year that closed September 30.

It's acquisition of the studio would also help return popular Marvel characters to the franchise, like the X-Men and the Fantastic Four.

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