Disney is coming directly to homes.

Disney is coming directly to homes.

Most see Disney as Mickey Mouse or fairy tale movies for kids. Disney is an international media conglomerate that owns many brands.

  • They acquired Marvel, Star Wars, and Fox.
  • They own ESPN
  • They own part of HULU
  • They own A&E
  • They own ABC

Disney leverages its assets

Since they own all these assets, they will likely look to leverage them in a new way — sell them direct to homes across the globe.

Disney is introducing a direct to consumer service in November called Disney+. In the financial markets, the company has articulated a global rollout plan. The scope of the rollout puts them in direct competition with Netflix.

Link: https://seekingalpha.com/news/3450193-disney-shows-disney-plus-app-plans-global-rollout-updated-price

Disney has piloted the rollout out of direct to consumer sports through ESPN+. In North America, customers can get a stream-ready version of some sports programmes that may not be under tradition cable contracts. As more customers leave traditional cable companies, so does the dollars content companies - sports and movie - receive.

An example of Disney content that could appear in Disney+ in the future.

Netflix will have a direct competitor

Disney is a formidable competitor because it has a library of content, well know brand content and major sports franchies. Disney+ looks to cover the delivery of movies and newly developed content for streaming. Disney could decide to bundle Disney+ and ESPN+ and create a complete streaming experience.

Apple has announced they will produce content and sell it directly to consumers. Apple is different because they will own/control the content and sell the device to watch it on - they offer an end to end experience with the actual customers.

What does this mean for Bermuda?

Bermuda customers of Netflix will likely have another choice for streaming content. However, this also means One TV, Digicel TV, BlueWave TV and LiveNet TV will also have another challenger for local TV dollars, like all cable companies around the world.

In the Regulatory Authority of Bermuda 2019 Market Review, it discloses the local Pay-TV market is eroding due to over the top (OTT) services such as Netflix. There are no signs that this will slow down.

Regulatory Authority of Bermuda 2018 Marketshare Subscription TV

What does it cost?

  • Netflix $9
  • Disney+ $7
  • Apple TV+ (price not announced yet)
  • Digicel $90 (Basic)
  • One $30 (Basic)