Things will be very interesting in the world of OTT streaming, as Disney sets an aggressive $ 12.99 monthly price for the upcoming bundle of services.
2019 has always been a year when the world of OTT streaming has shaken considerably. Apple, of course, is launching Apple TV Plus, and Disney and WarnerMedia have plans to launch high-profile services. But while WarnerMedia's HBO Max is now down next year – the bets are due to start in the fall – what is the home of Mouse House is sending some shockwaves though the market, not to mention spewing Netflix legions “.
In essence, a price spike has emerged. While Netflix is raising subsidy costs to handle its spiraling production budget, Disney has used its position as one of the largest media conglomerates out there to really warm the market. Its monthly launch price of $ 12.99 in November was already known, but now offers a package that includes Disney +, Fulou and ESPN + for $ 12.99. It's on par with Netflix and Amazon Prime and a substantial discount over $ 18 that would be worth subscribing to. It also has plenty of content: Marvel, Star Wars, Pixar, all of the existing Fulou boards, and a crazy number of Level 2 sports.
In contrast, the rumored price of the HBO Max has changed otherwise and increased by $ 16-17 per month. Which, in turn, heightens speculation that WarnerMedia will launch in parallel with second, cheaper and ad support. And, of course, we know nothing about Apple's plans other than the fact that they are inevitable and, unlike the others we're talking about here, they start with a global report.
What does all this mean for the American consumer then? There are two highlights here. First, the level at which people will subscribe to streaming services is stable at 2.8 per household, and people are increasingly rejoicing that they regularly change the services they subscribe to. Service A releases Series B of show C and they will announce it for a month, cut it, then cancel it next month because Service X released Show Z. on Show Z. Market, in other words, is final and unstable.
Second (and we should probably mark this part of the opinion) it is all unsustainable. Amazon and Apple are special cases because they have huge other businesses that streaming is a company addition, but streaming and streaming-focused companies spend too much money on too much content for too few subscribers. They're growing at a frenetic pace to continue paying off debts, and unless something changes and they may start using all that viewer data to support addressing advertising, for example, at some point there's a good chance it will break down and the bubble will burst.
When exactly this will happen is unknown. But research shows that just over 20% of consumers are likely or likely to sign up for the new Disney + service. If left to other services to do so instead of simply building their stack higher, 2020 may be a very long year for some companies.