The Walt Disney company is actually projecting Disney+ to be the people's choice as far as video streaming service is concerned. Disney+ will be launched in November. One of the major objectives of Walt Disney Company is to make Disney+ relegate other streaming platforms like Netflix. One of the plans of Disney+ is to make its services available to people at a very cheaper rate. Disney plans to make its services available to people at a lower rate of $6.99 per month. There will also be a slight reduction when you pay for a year subscription, as you are going to pay just $69.96 for its yearly subscription.
The idea behind this is to get enough subscribers; although this may cost them a lot, it will definitely pay off. The fact that people will have the chance to stream sports content via ESPN+ is a huge plus for Disney+ to achieve its goals.
The business model behind Disney + is more complicated. It hopes to earn subscription revenue; however, Disney is quite capable of generating cash flow through it's merchandising for its popular brands, and by drawing more folks to its theme parks, resorts, and cruises. Disney expects it’s streaming service to lose money for at least a few years.
The company's ambition is to come out ahead by creating more fans who will spend more money in the broader Disney ecosystem. Disney + will be ad-free. The $13.00 per month includes the ad-supported version of Hulu, rather than ad-free, which typically costs $12.00 per month. The scaling Hulu's ad business is one of the reasons Disney is bundling the service. If this bundle is successful, more Hulu subscribers will be very valuable for advertising.