Disney CEO Bob Iger said Disney is pulling its Marvel and Star Wars films from Netflix starting in 2019.
Disney (DIS) hopes its new streaming service will be a hit.
Netflix (NFLX) drops certain shows that aren’t hits.
UBS says if Disney prices its service at $9/month, then it will need 32 million subscribers just to break even.
Another analyst things Disney might price it at $5/month to make signing up a “no-brainer”
Disney will lose $2.5 billion a year from the license fees it currently gets from licensing its movies to TV channels and streaming services like Netflix.
As Amazon (AMZN) and Netflix already know, original content can be very expensive.
Experts have suggested that Disney should buy out Netflix.
They are already partners.
Plus, Netflix CEO Reed Hastings could take over Disney when Bob Iger retires.
That sounds like a hit to us!
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