Listen: The future of Star Wars: All the known movies and TV series coming your way
"Disney is trying to reshape the media landscape this morning, and at least it's reshaping the picture for a shares. Shares surging more than ten percent to a record high. Joining us in our Bloomberg interactive brokers studios. I'm so pleased to say terror Lachapelle who covers all things media and deals and telecom for Bloomberg opinion, terra, I find this deal fascinating. They unleashed Disney. Plus, which is the answer to net flicks. But can we start with just how limited is this offering at first I mean, this offering six ninety nine a month and a lot has been made of the price. But it's because there's not going to be a whole lot on it to begin with. If you're a really big Star Wars fan, perhaps there's a dry there because they are going to be able to have all the old Star Wars films. Which wasn't a sure thing we didn't know that. There was a big surprise last night because doesn't it actually sold the rights to those movies to Turner awhile back? So they probably had to pay big time to get those rights back for the Disney plus app. So if. Star wars. Okay. You've got that a Star Wars series is going to be on it the mandatory orien-, and then a lot of old Disney movies. So if you have young kids, perhaps it's good for that. Because we know kids don't mind watching the same movies over and over again. It's a great way to keep them. Busy. That you know, it's it's build a sort of the family app compliment to ESPN, plus and Hulu, which are the sports and more of the content. I guess you could say, but to me it really is forced to per fans of Disney and six ninety nine you know, you really not getting a whole lot for that price at first what's the vision for Disney? Plus, I think Disney plus is the product of the center of the future of Disney, which is kind of amazing. And I made the point in my column today that that's why the name kind of concerns me because Disney plus implies it's sort of like an add on as supplement to the real Disney. When really they're sticking their future on this app. And it's not gonna be profitable. And until two thousand twenty four which is going to be a few years after CEO Bob Eiger, who's leading this mission as long gone. He's retiring in twenty twenty one. So there's still a lot of questions about what this is going to look like how it's going to disturb the rest of the empire as an increasing amount of content goes to the app and not to. Sneeze other properties. How's this going to be the future though? I mean, I assume that eventually it will have more content. You're talking about the limited offerings at the initial out. What is the content eventually? And how does this end up being the monster revenue driver that Disney really needs? So I think what they're envisioning is as we've sort of seen this bulk innovation of the TV industry that Disney is increasingly going to keep anything that comes that's made by Disney on Disney. Plus, that's where you're gonna have to subscribe to get it or ESPN, plus and Hulu, and maybe they'll be some sort of bundle of those three apps. But basically, if if you're a Star Wars fan, if you like marvel movies, if you want Pixar movies, National Geographic content, you're gonna have to subscribe to Disney. Plus, so they're really sort of. Monopolizing that content for their own app. And it's not going to be available in other places. I mean, you can still, you know, big big films. We'll still go to the movie theaters, and maybe people will still pay to go. See those marvel productions maybe that still draws people out to pave and go to the movie theaters. But at the end of the day, I think what they're saying is the app is going to be the new home of Disney, and you need to subscribe. If you want anything Disney, so people are focusing on Netflix today. Netflix shares are slightly lower. But to me the real losers here, potentially the big cable networks. Absolutely. I mean, Disney right now is very dependent on the traditional bundles still, and they're not fully moving away from that by any means with Disney plus app yet. They I hearing from keagan part of peak global market intelligence that Disney gets about fifteen dollars a month per subscriber from its top twelve TV networks, which is a ton of money, and they're gonna have this app for six ninety nine. They generated about three billion dollars in box. Office ticket sales last year from its films and eventers endgame opening later this month could be the biggest opening ever. So they are still very dependent on these former revenue streams, but I think Disney possible accelerate this court cutting trend because if you are such Disney fan, why would you subscribe to cable one hundred dollars hundred dollars a month or you could just get Disney for six ninety nine. And I think that's what they're really hoping for. Although can you really get it for six hundred nine. My question is when they actually start to incorporate more offerings onto Disney, plus can they possibly stay at this price that undercuts net flicks. I mean, that's the reason why people were so odd by it because it just blows that flex out at the water in terms of in terms of discounts. Right. I mean, they've left themselves a lot of over to raise the price at six ninety nine. It's much cheaper than net flicks at twelve ninety nine, but again, Netflix has more I would say diversity of content for adults at least. But yeah, they've left themselves a lot of room. And I I would imagine the company hasn't said anything about this. But I would. Imagine that over time as bigger hits make it to that app. And they're increasing number of originals. They will have both the wherewithal and the need to raise the price. Okay. So going forward four net flicks. What is sort of the key test about whether this will actually draw people away from it? Yeah. Because I think right now the draw. Netflix is good enough for the price. Right. Maybe it doesn't have always the the best quality movies. And it doesn't have some of the TV shows you like to watch on cable. But at the end of the day at thirteen dollars a month. That's kind of a great deal. The question is over time. Does it lose that appeal as Disney plus comes on board, and then AT and T launches some apparatus HBO and the other assets bought from Time Warner, and there's all these other free ad-supported apps coming coming out. Now this year. That question is do people still need to pay for net. Flicks. I think for a lot of people it's going to be sort of the base case. It's kind of like what you need. And then what else can you afford to pay for? But for others for parents, maybe doesn't plus a lot of their problems, and they don't need flex, and that'll be interesting to see over time does that flex sort of that that premium. I honestly want to use that quote for the rest of my life, maybe for parents, plus solves all of"