THR Cover: Disney over the top – Bob Iger bets the company (and Hollywood’s future) on streaming
One of the first TV projects Disney+ ordered was Favreau'sseries but also because Disney+ is essentially a brand-new network and needed to figure out its deal structure. Sources say Disney has been moving toward a model of buying out the backend for most projects, regardless of whether they air on a network or stream on Disney+, a move spurred by the popularity of the formula with streamers like Netflix.
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,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.
Mayer suggests it wasn't easy to settle on that price. "We struggled with [the decision] 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.
In order to truly compete, Disney+ will need to make significant inroads internationally, where more than 91 million people currently subscribe to Netflix. Following the North American launch of Disney+, much of 2020 will be devoted to rolling the product out overseas, where over time Disney+ also expects to launch local-language programming like Netflix. However, without ESPN+ or Hulu to bundle with the offering, it may be a less attractive option for some subscribers.
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