Disney’s venture into streaming services is well underway with a late 2019 launch date, according to CEO Bob Iger. There have not been any details as of yet in how the films from 21st Century Fox will be implemented into the service, but there ought to be further developments throughout the next two years.
According to an estimation made last year by Morgan Stanley analyst Benjamin Swinburne, if the Disney streaming service hits 30 million in their subscriber base, it could generate up to $5 billion in revenue. Not only that, but the service’s EBITDA (earnings before interest, taxes, depreciation, and amortization) would reach $1.5 billion, resulting in a value of $20-25 billion for the company’s effort.
Other well-known streaming services such as Netflix or Hulu are bound to receive a decent amount of stiff competition from Disney. However, the CEO of Netflix, Reed Hastings, doesn’t seem to be sweating in the least, saying: “We don’t see it as a threat to us any more than Hulu has been.”
He then added that he expects Disney to be “very successful” in their streaming endeavors, and said that he would subscribe once the service is launched. “I know I’ll be a subscriber of it,” said Hastings.