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How Disney plans to take on Netflix, YouTube and Foxtel

Disney has finally announced that it is planning to launch its online video service to challenge the likes of Netflix, Youtube and all the other incumbent media businesses.

This is a big deal because it could seriously affect the operations of ASX businesses like Nine Entertainment Co Holdings Ltd (ASX: NEC), Seven West Media Ltd (ASX: SWM), Telstra Corporation Ltd (ASX: TLS) and News Corp (ASX: NWS).

The new service will be called Disney+. Everyone seems to be adding a ‘+’ onto their name these days.

How much will Disney+ cost?

US customers will pay US$6.99 a month of US$69.99 a year for the service, so if a customer pays annually they will receive around two months free a year.

What will Disney+ include?

Anything produced by Disney or one of its subsidiaries will be included. So, all the Disney classics like Lion King and Peter Pan will be on there.

All of the Pixar films will be on there like Toy Story, Finding Nemo, The Incredibles, Monsters Inc and Cars.

The Marvel Universe movies will be on there, as will all of the Star Wars content.

All of the 20th Century Fox media will be on there too, due to the recent acquisition by Disney, like The Simpsons and X Men.

It’s a very impressive catalogue.

New Disney-created TV series will also be launched exclusively on Disney+ such as The Mandalorian, which will be a live-action Star Wars TV show.

How long will Australian customers have to wait for Disney+?

Quite a while it seems. US customers will only get to start using it from November 2019 and some other markets will take much longer. Stan currently has the rights to Disney content in Australia, so it will be a while before the contract runs out and Disney is ready to launch here.

Some people may be wondering if all of these media companies keep launching their own platforms how long before it’s cheaper to buy a Foxtel-like accumulator of services again?

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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