Disney+ Set To Be Free After Carrier Deal
Speculation is mounting that Disney+ could be launched in Australia on November 19th driven by a free 3-month subscription campaign in partnership with either a retailer or carrier.
Last night it was revealed that Disney has cut a deal with US Carrier Verizon who will offer unlimited wireless and broadband customers a free one-year subscription to Walt Disney’s soon-to-be-launched streaming service Disney+. The move saw Netflix shares fall more than 3 percent.
ChannelNews has been told that both Optus and Telstra have held discussions with Disney+ with Optus believed to be pushing hard for a deal to promote their 5G services. Also pushing for a commercial deal are Woolworths and Coles.
A senior executive of a leading streaming Company in Australia said that this approach “has its risks” as consumers can get through “a lot on content in three months” and then decide not to pay for a subscription.
Observers claim that Verizon and Disney are taking a page out of Apple’s playbook by giving away for free a year’s worth of the video service, to quickly build a subscriber base.
Apple plans to give away a one-year subscription to Apple TV+ for all purchasers of new Macs, iPhones and Apple TV devices. The service is set to launch on Nov. 1.
Analysts estimate Apple could sell as many as 200 million of its latest iPhones to existing users upgrading their old phones.
The Verizon deal gives Disney access to a large customer base claim analysts who recently noted that the service is not tipped to break even for at least two years.
Verizon had 124 million customers across wireless and broadband internet as of last quarter.
Disney shares opened up 2.1 percent at $133. Verizon shares rose 0.3 percent to $60.94 on the New York Stock Exchange. In late morning trading, Netflix shares fell 3.3 percent to $268.80 on Nasdaq.