Has anyone really gone on to illustrate how much Disney is putting into their upcoming streaming service Disney+? Yeah, I know. I pretty much drive it home every single article about it. Even for a company like Disney, the resources they’re putting forth can’t be overlooked.

“The investments we’re making on the technology side and increasing our incremental content are all designed for the long term. This is the equivalent of deploying capital to build out theme parks,” Bob Iger said in a quarterly earnings conference call. “This is a bet on the future our business. We are deploying our capital so that the long-term growth of this company is stronger than it would have been without these investments.”

But it’s worth keeping in mind that, as a production powerhouse, they are in as good a position as anyone to save a decent amount of money in setting up this new service.

“We have in the Walt Disney Company not only a collection of brands, but we have the talent relationships and production capabilities that (support) nicely our output,” Iger said. “We do not have to invest that much in overhead or infrastructure to do that. We can leverage our people and the capabilities of all of our media businesses to grow the product for the new platforms very efficiently.”

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But that’s not to say there still isn’t a sizable investment they need to make.

One other big chunk of money that can’t be overlooked is the opportunity cost. More specifically, the money they have to gain in licensing out their films and TV shows for other platforms. Variety is reporting that the House of Mouse will forgo $150 million in its content licensing revenue in the current fiscal year. It makes sense, as platforms like Netflix will no longer be home to Disney content.

Of course, we can’t forget that, assuming this pans out for Disney, they could have a lot more to gain. With Disney+ being the only place to stream their content (in addition to purchasing individual films), they’re banking on their loyal customers flocking to their service. If that makes up the $150 million difference, it’ll be well worth it.

It’s worth remembering that this includes big movies like the Marvel Studios film. Captain Marvel is set to be the first new Marvel Studios production to get released only on the Disney+ streaming service, as opposed to others like Netflix.

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SOURCE: Variety