Disney plans to launch its own streaming service in the United States in 2019, which will feature content from Pixar and Marvel studios. During the Code Media conference, held over the course of this week, Disney’s chief strategy officer, Kevin Mayer, spoke about the company’s plans for the streaming market, which include investments in Hulu, in addition to competing with Netflix.
According to the executive, Hulu will be the third component of its direct-to-consumer strategy once Disney becomes a majority owner of the streaming service, following the acquisition of 21st Century Fox assets.
“It takes an investment for sure, and we’re happy to undertake that,” said Mayer. “There’s going to be a big, profitable service,” he added. Hulu is currently in a growth stage, but still reports losses. In 2017, Hulu lost USD 920 million, versus a loss of USD531 million a year earlier.
Meanwhile, the company plans to launch an ESPN standalone OTT service this year, which will have a monthly price of USD 4.99, as detailed by Disney CEO Bob Iger, during the presentation of the company’s quarterly results.
In this context, Hulu will serve as a complement to the sports-focused and family-friendly OTT services that the company is currently preparing.
With this new strategy, Mayer said Disney isn’t trying to “hurt or kill Netflix”. “I personally like Netflix. They’ve got a great product,” said Mayer. “We’re not trying to hurt or kill Netflix. We think we can serve consumers better.”