The Disney Plus-Hulu merger is way more than a streaming bundle

These differences make sense when you realize that Disney+ is not simply about earning subscription revenue; rather, it is a direct-to-consumer touchpoint for Disney’s entire business

At first glance, Disney+ seems a lot like Netflix: pay a monthly price, and get access to a bunch of different shows. However differences quickly become apparent:

Disney didn’t need a direct-to-consumer SVOD service to successfully tell stories and build love for them; it has always been disintermediated and thrived all the same... Disney+ offers important comparatives advantages to this “easy money”. By bringing all of its franchises and titles together into a single platform, Disney can better tell its sto... See more

With the above dynamics in mind, we believe that there is going to be tremendous near-term innovation in the pay TV distribution business. The internet has made it possible for new entrants to innovate quickly and materially. Consumers will have more choice and convenience going forward. This competition will drive prices and margins down in pay TV... See more