Disney is reportedly exploring modeling a service off of Amazon Prime. This new “Disney Prime” would cover all of the markets that the corporate giant has its fingerprints, including parks and streaming.

Closing Bell

Disney Exploring Amazon Prime-Like Cross-Service Subscription

well, Disney mulling a subscription offering for people who love to spend on products from the House of Mouse. The product nicknamed Disney Prime would offer discounts on streaming services, theme parks products and more. And joining me now is Michelle Castalia, senior reporter here at Cheddar news, Michelle, it's good to see you. So do you think that there's enough fans out there of Disney to warrant having a subscription product like this? You know, I think there are tons of fans of Disney out there and they have so, so they're put in so many different businesses that this just makes sense. So I was actually speaking to Forrester and this Disney product seems to be modeled with amazon, kind of close to amazon prime as you had mentioned earlier and think about it, amazon Prime. Yes, it does help you get two day shipping, but you get a lot of other benefits, you get a lot of benefits from whole foods and other discounts, you get streaming services. So think of it that way. So this is a way for someone who might have, you know, wanted to go to a Disney park, maybe once out of every five years, maybe they'll go more frequently if they know they can get a discount, maybe they were on the edge about Disney Plus and now it's gonna come in bundled in with this subscription, um, discount service, so they're gonna have a subscription to that as well and they might be more likely to buy products because they'll get that additional discount, especially with family and friends, having birthdays and everything. We just know they have so many franchises from marvel to Star Wars. So it makes sense for a company of this size, Forrester says about 63% of americans have an amazon prime account and with Disney having such a big household name, it could be something similar to that. So how could this help Disney boost its numbers for its streaming service, especially as it does prepare itself for an ad supported version come december 8th. Now there's a couple of really interesting ways that we can look at this as it refers to Disney Plus one is what I kind of mentioned earlier, let's say you're on the fence about Disney Plus if you add this subscription and you get the you get the discounts for this theme parks, you also get a free subscription maybe to ESPN plus or Disney Plus, I think the details are still being worked out. Disney did confirm that they are thinking about this to cheddar. Um it may help boost that 152.1 million number subscriber number that they have right now, one thing I also find interesting about them is that they are the third ranked when it comes to original shows, according to parrot analytics, so this could actually give them another boost to get them into that one and two ranks behind netflix and HBO max. The other thing is think about it and everyone who subscribes to this will give access to their data. And with Disney adding that ad supported here, this could give them valuable first party data that could give them insights to better advertising targeting. So it all makes sense. How does this differ? Michelle from Disney's existing fan club, D 23. Well, think of D 23 is the one for hardcore Disney fans. So that's about, it starts at about $100 a year for an individual, you get a special collector's items, you get access to special events, you get early exclusive tickets and discounts to the D 23 expo, which is the big Disney fan event of the year. So this is more for the hardcore Disney fan that has already committed their loyalty. But I think they're looking at this, quote, unquote Disney Prime for is the average consumer who may want, you might want to go to the park, may want to buy a few products here and there. May be interested in Disney plus, but having this bundle where you can get everything a little bit of each Disney service for a little bit of a discount, especially as people are watching their budgets. I think it's just a good value proposition. So it's more the moderate fan than it is. The Di ha, which is more than 23 audience. Okay, so speaking of D 23 I know that this D 23 expo is expected to be held just in about a week september 9th through the 11th at the Anaheim Convention Center. So what should fans and investors Michelle be on the lookout for their now. D 23 is really interesting in the, in the past, we really looked at Comic Con as the big place where you get a lot of insight into upcoming programming with D 23. We're gonna get a lot of insight into Disney's upcoming programming, expect a lot of big news about programming on Disney Plus and although Star Wars has its own um convention called Celebration, Disney will have marvel content here. They are supposed to be talking a little bit about the upcoming Tron movie Percy Jackson. So, what you want to see coming out of Disney content will really be previewed at D 23. So, yes, a lot of things for fans to look forward to. A lot of new trailers, a lot of new insight into what's next in the marvel universe, but also for investors to see if that slate of originals is going to stack up against their competitors because we know a lot of people are putting money into content and definitely, I know brands are taking a look because they want to see what they can advertise on in the future. All right, cheddar news, senior reporter, Michele Castelli. Oh Michelle, thank you as always for the breakdown