Disney+ is facing a competitor that they almost certainly were not originally expecting. With Netflix escaping Disney’s ability to catch up in any foreseeable future, now they’re fending off smaller competitors that were once seen as irrelevant.
A source over the weekend has informed me that Disney has been running a prototype of what may add as a new feature to Disney+ in the next months. Apparently it all comes down to a great fear of Tubi.
Now I know it’s hard to believe that Disney might be afraid of Tubi, but that’s only because Tubi isn’t well-known yet… but it will be if left unchecked. The free streaming platform that uses licensed content and ad-based revenue cost Fox Corp only a measly $440 million to get up and running (that’s the same company that sold Disney their portion of Hulu for billions and billions of dollars). Now Tubi is right on the heels of passing Disney+ in terms of viewer engagement. Given that Tubi is funded via ads, it’s the only number that matters. It also means that Tubi is already likely profitable, whereas Disney+ is about $30B in the hole with no end in sight. Take a look at how close Tubi already is in taking a lead over Disney+.
Nielsen shows Tubi rapidly catching Disney Plus in streaming ratings!
For Disney, losing to Tubi would be a dealbreaker for shareholders. So it can’t be allowed to happen! And Disney has been watching Tubi rise in ratings over the last year at an alarming rate. So a plan was — allegedly — devised.
According to this source, Disney used their ABC app with a tiny subscriber base to test out how 24/7 live channels would work with their customers. Some of these channels have included 20/20, ABC News Live, Cesar Milan: Better Human Better Dog, ESPN8: The Ocho, General Hospital and more. With each channel, it’s non-stop, 24/7 play of these topics, interspersed with ads… but you can’t choose your episodes at all. They just play continuously. In other words, it’s highly-specific cable channels 2.0. The problem Disney is facing with Disney+ is, they have to stop Tubi… and that potentially means integrating a completely different business model than they currently have. That’s Murky but the ABC app model may be the only option they have.
Disney also has the issue of struggling with 24/7 catalogs that aren’t damaged. Using their Star Wars live action shows as a channel, for example, isn’t likely to drive any significant ratings. Allegedly, Disney may be looking at a Marvel Channel instead that plays nothing but MCU movies. They may also be looking at an 80s / 90s Disney Toons Channel, a NatGeo Channel and more.
But REALLY the source says, Disney is now hoping to use Hulu content to generate views on Disney+ via these 24/7 channel options. Futurama is almost certain to join The Simpsons. Family Guy is almost certain to be there, along with King of the Hill. And, frankly, I have to say that this would be the very best play Disney has for catching up with ratings. What’s so amazing about this source’s allegations are they would definitely explain why Disney needed to integrate Hulu into Disney+ so quickly (even before they’ve finished paying the total fee for purchasing the streaming service). It may be that Hulu’s Fox cartoons are what Disney needs for a Cable 2.0 option that just might stave off Tubi and other free streaming services.
After all, Disney+ is currently behind YouTube, Netflix, Hulu and (often) Amazon Prime Video for streaming ratings. Dropping below a host of free streaming services is a pitfall too great for Bob Iger. There’s no guarantee this will stop it from happening, but it is likely their best option.
Note: Parts of the following article are sourced from a contact whose identity we are protecting. Please consider this article based on rumor and speculation.
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