Due to their ever increasing popularity among consumers, streaming services continues to increased production budget to stay in the market. For instance, recently Netflix announced that it will be spending for video production this year. Ahead of its scheduled streaming service launch later next year, Disney has revealed that the studio won’t be required to spend such high amount of money to bring contents to consumers as they already have extensive collection.
The latest claim came from CEO Bob Iger during a conference call. He said, “The demand for those brands, we believe, will give us the ability to spend less on volumes,” said Iger, on a conference call on Feb. 6. “We have an opportunity to spend more on original product of course, but not necessarily to go in a volume direction, say, that Netflix has gone.”
While the company hasn’t reveal how much it plans to spend to bring more contents to establish itself as direct competitor, the company still plans on spending substantial amount to bring high quality contents. As a result of this, the streaming service is expected to be significantly cheaper compared to Netflix’s monthly subscription price.
Iger said, “We, obviously, are going to need enough critical mass from a product perspective, but when you go to market with Star Wars movies, Disney movies, Pixar movies, Marvel-branded and branded television shows under those umbrellas, in some cases using very well-known IP… that will give us the ability to probably spend less than if we have gone to market with a direct-to-consumer service without these brands.”
As Disney continues to bring more contents, the studio’s collection will grow before the service launches later in 2019. However, it will be interesting to see if the service manages to live up to expectations as Netflix is also ramping up its production as it plans on releasing 80 movies this year alone.