THE HOLLYWOOD REPORTER 62 OCTOBER 16, 2019
outside studios if they are pitch-
ing projects that are “undeniably
and uniquely Disney.” That’s
made it more challenging for
the creative community to work
with Disney+, which, because
of its focus on its core brands,
isn’t always the right home for,
say, a raunchy comedy or gritty
drama. But while Disney+ has
been deemed the family-friendly
component of a three-service
bundle that also includes Hulu
and ESPN+, Mayer dismisses
the notion that it is in any way
a niche play. “We are design-
ing the product and the content
within the product to appeal to a
four-quadrant audience,” he says.
“Young, old, male, female — we
have content for everyone.”
Still, the Disney+ launch slate
will be lighter on originals than
other streaming services, which
rely on specific projects to lure
new subscribers and retain
existing ones. Though it will
offer 10 originals at launch, The
Mandalorian is the only true
high-budget tentpole project
among the bunch. “Original,
exclusive shows will matter,” says
Macquarie analyst Tim Nollen.
“That is what has made Netflix so
successful, especially in the last
six years. That will be important
to any of these services. Just
doing reruns and old movies
isn’t enough.”
Strauss, a former film mar-
keter, acknowledges that Disney+
is starting small when it comes
to originals and will ramp up
over time. Eventually, the com-
pany expects to offer 50 originals
a year between films and return-
ing and new series. “It takes
some time to get [the tentpole]
shows completed,” he says.
While analysts had been
dragging Disney for its lack
of digital strategy for years,
that didn’t mean that inves-
tors would be immediately on
board with an investment in
streaming that, by one estimate
from MoffettNathanson, would
mean $8.8 billion in operating
losses over its first two years.
So on April 11, Disney staged an
elaborate presentation inside the
historic Stage 2 (site of the original
Mary Poppins set) on its Burbank
campus. Over the course of the
nearly four-hour presentation,
executives unfurled their strategy
for the service and revealed a
gasp-inducing price of $7 per
month, significantly lower than
Netflix’s standard $13 monthly fee
and (later) bested only by Apple
TV+’s $5 monthly price point.Mayer suggests it wasn’t
easy to settle on that price.
“We struggled with [the deci-
sion] a little bit,” he says.
“We wanted to find the right
price that we felt reflected
the quality of the service and
the product itself while also
maintaining something that
is pretty important at Disney,
democratizing the availability
of the app.” The final decision
didn’t come down to a lot of
consumer research but, instead,
what a small team of executives
felt was right based on their
subscriber goals and the larger
competitive landscape.The pricing is expected to give
Disney a leg up as consumers
weigh how many of the rash of
new offerings they’re willing to
pay for. Bundling it with 1-year-
old ESPN+ and Hulu (which
Disney assumed operational
control over in May after acquir-
ing Fox’s stake and striking a
deal with NBCU) for $13 also
gives it an advantage and is key
to helping Disney reach a goal of
as many as 160 million subscrib-
ers between all three services in
the next five years. But observ-
ers expect the low rate won’t
last for long. “They can’t survive
at $6.99,” says Cole, suggestingLibrary content — including access to classic films and franchises — will make up the bulk of the Disney+ offering on Nov. 12 as the company
slowly ramps up original programming to reach its goal of 50 original series and 10 original features and specials each yearDISN EY+ SL ATE: WHAT TO EX PECT (AT FIRST)
ORIGINALS SLATE
10 series, movies and documentaries
at launch (with plans for 35 total projects
in the first year) including:FILM LIBRARY
Nearly 500 films — new releases and
classic Disney Animation, Pixar, Lucasfilm and
Marvel titles — at launch, including:TV LIBRARY
More than 7,500 episodes at launch including:
↓ The Simpsons (all 30 seasons), Boy Meets World,
Ducktales (1987, 2016), Kim Possible,
Star Wars: The Clone Wars, Wicked Tuna
COMING LATER:
Malcolm in the MiddleThe Mandalorian, High School Musical: The Musical:
The Series, The World According to Jeff Goldblum,
Lady and the Tramp, ↑ Noelle
COMING LATER:
Diary of a Female President, The Falcon and the Winter
Soldier, WandaVision, a Lizzie McGuire reboot↑ Captain Marvel, Frozen, Sleeping Beauty,
Star Wars (Episodes I-VII), Free Solo, Iron Man
The Sound of Music
COMING LATER:
Avengers: Endgame, Toy Story 4, The Lion King (2019),
Star Wars: The Rise of Skywalker“We’re starting from
a position of strength,
confidence and
unbridled optimism,”
Iger (below right)
told investors April 11
as he and Mayer
(right) unveiled the
plan for Disney+.