Disney+ may be the newest name in the streaming service game, but it isn't here to replace Netflix.
At an industry event held in Indonesia, Kevin Mayer, chairman of direct-to-consumer and international at Walt Disney Co., confirmed the team developing Disney+ is not concerned with being "bigger than Netflix."
"Going all in with the new business model, disrupting the film business is not taken lightly," he stated. "We’re not after being bigger than Netflix or beating Netflix. Netflix is a very high-quality service, we’re offering entirely different content. We’d just like to serve consumers well."
When discussing how Disney+ would intersect with the larger Disney media empire, Mayer confirmed Disney will utilize its television, film, theme park and other media enterprises to promote the service. "We’ll utilize those fully and aggressively, for sure."
However, while Disney+ might not directly compete with Netflix, come the end of the year, it plans on letting several contracts with other streaming services, including Netflix, expire. This will make Disney+ the exclusive home of Disney-produced content, including projects from Fox, Marvel and Lucasfilm.
“It’s a big financial growth strategy," Mayer added. "There’s a whole part of the value chain that doesn’t rely on third parties. And that distribution value chain doesn’t require massive infrastructure anymore. It requires the right brands, the right videos, and the way to inject that video onto the internet. You can do that, you can have your high-quality distributor. We have the brands that work, brands that matter, therefore built-in equity with consumers, and an advantage to get people to view our product online outside of a traditional TV bundle."
Financially, both Mayer and Disney CEO Bob Iger believe Disney+ will break even within the next five years, following an expansive business plan that will require direct-to-consumer content creation churned out and supported by Disney's numerous other business enterprises.
“Investors will be able to value the traditional Disney, which we made whole because of the payments we’re making, and the new part of the Walt Disney Company, which is our D2C business," Mayer said.
Disney+ is expected to have far less content than other streaming services, and its business model is clearly vastly different from the model employed by Netflix. For Disney, Disney+ isn't a core moneymaker, but rather another cog in its ever-increasing media empire.
Disney+ will launch Nov. 12.
(via Hollywood Reporter)