Disney are looking to get into the video streaming game as early as next year and will hope to rival giants Netflix, as well as the likes of Hulu, Amazon Prime, Apple TV.
Chairman and CEO Bob Iger has revealed that the service, which for now is being called "Disney Play", is the company's biggest priority for the year 2019. But, for starters, they will be dependent on their own shows and movies.
A recent report in Variety details Disney's plans for getting into the market which has seen Netflix thrive virtually unchallenged for several years. They plan to launch at some point next year with a service that will feature Disney, Marvel and Star Wars movies.
Variety has revealed that Disney won't be charging as much as Netflix, who rake in $8 to $14 every month from users, simply because they won't have as much content as their soon-to-be competitors.
Disney's current agreement with Netflix will be nullified in 2019, after which the company will move to start up their own streaming service. The deal which exists right now only affects rights to new Disney content, so shows like Luke Cage, Jessica Jones and Defenders won't be leaving Netflix.
The rights to Star Wars and Marvel films are still being decided, but it is expected that they will remain put when the new service gets released.
Due to the fact that there won't be loads of original content available, Disney will be banking on upcoming movies such as Captain Marvel, Frozen 2 and The Lion King live-action adaptation, as well as Star Wars, Disney and Pixar-branded properties, which will only be available through their service.
“We have the luxury of programming this product with programs from those brands or derived from those brands, which obviously creates a demand and gives us the ability to not necessarily be in the volume game, but to be in the quality game,” Iger was quoted as saying.
The company will also explore ways to restore broadcast tights for Star Wars, having made a deal with Turner in 2016 that allows them to run it via their outlets.
The venture is considered to be a huge risk for Disney, whom an analyst has said would need to garner 40 million subscribers paying at least $6 a month just to break even.
This might come as good news for Netflix users, who have reacted quite negatively - and rightly so - after learning that the company will be running ads during their movies and shows.
But it isn't expected that people will simply flock to Disney, and the company will have to be very patient with their new project if they are to record a fair measure of success in the coming years.