Recently came the announcement by Disney Pictures of their intention to launch their own streaming service that would serve as the exclusive SVOD home to their massive library of film and TV shows.
This past week came confirmation that Pixar, Marvel, and Star Wars films would all be shifting to the platform and leaving their current home at Netflix. All up the service is expected to offer around 400-500 movies and around 7,000 episodes of TV, as well as exclusive new content that will range from live-action movies to TV series.
The idea of unrestricted access to Disney’s titles across the board is a promising one, but a new report from UBS analysts (via Business Insider) indicates that the system will have to garner a lot of subscribers just to break even. How many? Approximately 32 million.
The report comes up with that amount from estimating that the studio currently makes at least $2.5 billion from film and TV licensing alone – revenue that will effectively vanish with the new service’s exclusivity. If subscribers have to pay around $9 per month, ala many services now, approximately 32 million will be required to achieve break even status.
To put that in perspective – Netflix has 50 million subscribers domestically after a decade of running. HBO Now sits at 3.5 million, while CBS All Access and Showtime are 4 million combined.