Disney's streaming service will offer original programming for popular franchises

Disney's streaming service will offer original programming for popular franchises

"That is in part reflective of the fact that it will have substantially less volume", Iger said.

This week, Disney CEO also announced that they plan on making sure their streaming service is "substantially below" the current price of Netflix, which now sits at a $10.99 a month price point for United States subscribers, and will likely increase in the coming years.

Those who will probably subscribe to this Disney service will also probably not unsubscribe to Netflix because there's so much more content with the latter. If it's more than $5, it's not "substantially below" Netflix's prices. And by over we mean you have a couple of years more to watch them on that streaming service. Disney has a lot of movies to add to their catalog because they've been making movies for so long, but no one knows if their entire library will be added to their streaming service or just select titles.

Netflix should be anxious here, as another streaming service means they're not only going to lose all Disney-owned titles, they'll also be battling another platform for new content.

Netflix is the current streaming leader, but Disney's entry could present some challenges. Disney's original content for its upcoming streaming service has a distinct advantage because the first announced new shows tap the Star Wars, Marvel and Pixar franchises and other already-established brands.

It makes sense to think these streaming services will all be competing for subscribers, but it looks like these two streaming services can co-exist in the same space.

Disney CEO Bob Iger says that while the company's looming service will offer quality content, a lack of quantity is what will keep the consumer monthly price lower than Netflix.

Disney's streaming service is still a year or so out, but expect to see some pricing information released a few months before the streaming service launches.

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