Listen: Disney enters streaming wars with $13 monthly bundle of Disney, Hulu and ESPN offerings
"So let's move on to streaming because they made a big announcement ciment on their earnings call disney announcing that they will offer a bundle of their three streaming services disney plus hulu and e._s._p._n. Plus for twelve twelve ninety nine a month starting november now. If that amount sounds familiar that's because netflix is most popular plan is also twelve ninety nine disney ceo bob iger says that's a coincidence own sure yeah. So what do you think of the disney bundle because that sounds pretty pretty compelling. Especially when i looked at hulu this morning and i looked at all the hulu channels i could get and i'm like wow i can get c._n._n. I can get m._s._n._b._c. and fox fox news and all of the news channels can get e._s._p._n. I get all of the cable channels. I wanna watch. I mean that's pretty compelling. Yeah while i mean for for as long on as we can remember i mean we've talked about what a great value net flicks is in and it really is. I mean <hes> you're paying not a whole heck of a lot for ages slew of content <hes> and i think you would make that argument with this bundle as well. I mean this is going to be a tremendous value. Even if it's not everything that you wanted to be for the price that you're paying. You're gonna have a very broad offering content that spans from animated made a disney content to sports to news to you know whatever else they have in their streaming catalogue on hulu which is a lot <hes> and i think that you know we knew what we assume. We pretty sure that we're going to do some type of bundle thing. Because why wouldn't you <hes> and it really does boil down to. How will they be able to raise prices for this over time. I think they very very wise thing in offering this package for such a low price and i mean we don't know oh exactly what's going to be in it but i can guarantee. There's going to be a lot in there that's going to it's going to scratch a lot of different issues so to speak and it'll give them room to raise that price over time okay so i i am both a disney shareholder in a netflix shoulder so as the disney shareholder. I'm pretty fired up about this bundle. Yes how should i feel as a netflix shareholder because as we've talked about time and time i'm again a lot gets made of this disney versus narrative disney versus narrative and the price seems fairly fairly quick convenient vignettes the same price as netflix says most popular plan. Is this a threat to net flix or do. You think that's overblown. I i think it's overblown. Firstly i mean i do. I think that netflix the excess done such a good job in helping spearhead this over the over the top movement really destroying movement that i think they've established themselves as kind of bed rock doc streaming position. It's a bedrock member of the services to which you'll subscribe in and i think they'll be able to maintain that a position for the foreseeable future <hes> because again it's it's a tremendous catalog and a lot of a lot of content there. I think that disney has put themselves in the conversation <hes> as a bedrock holding holing as well now. I don't think it's a threat to net flicks. The question i think for investors when it comes to net flix though is how much farther can netflix raise prices now right because i mean this is all about for net flicks they're starting to. They've got a very big subscriber base. I mean it's it's reasonable to figure that maybe they're kind of the that that growth is going to be a little bit tougher to come by. Particularly more competition enters the fray. So how much farther can they raise prices before people start saying you know what maybe maybe. I don't find that to be as worth it or maybe i'll downgrade to the simplest plan they have in in that to me could be a big problem for investors. I it's a problem for netflix the company but i mean as an investor that's my first question because the one thing we're critical of netflix is that they pay a lot of money every every year for content i mean they had a wapping bill that is going to be do for the foreseeable future in. I don't know that that ever really gonna slow down in. I know content is a very personal thing right. Some people love certain content some people don't i personally view net flicks is having very mediocre universe of content and it. It sounds like they're going to be losing a lot of stuff here in the near future now. That's just an opinion right. I know other people love their content but i know i'm not the only person that shares the opinion that their content is somewhat mediocre <hes> so then it goes back to how much can they raise prices before people start trying to make a decision way one versus the other. I don't know that they have a whole heck of a lot of room want to do that in if they don't. That's going to be a big problem for the financial side of this business okay so back to disney plus though if netflix ultimately is not that threatened by disney plus. They're fighting their own fight with the cost of content. Who do you think is most threatened by disney plus. I think it's the traditional cable companies in we even we even saw nice passage in the call with bob. Eiger talking about houses disney is kind of having their cake and eating it too. It's really neat because for the longest time they've played on the traditional side of the equation right playing with the cable companies navy affiliate advertising revenue they bring it from being a part of that cable relationship but as time goes on and we see that cable relationship is eroding as we see more offerings whether to live or youtube live or whatever into disney is now having to sort of play both sides of the fence there and making some of their content there for cable companies available but also building out their own offerings here with their streaming properties whether it's plus s._p._n. Plus or hulu live or hulu disney really controls a lot of the power here because they can pick and choose and i think that i mean cable companies are just on the wrong side of history. They're notorious aureus for just really bad service one of the great things about streaming as the services so cut and dried simple and easy and the interface is so slick experiences so great whether it's netflix h._b._o."