What We Know About Star, Disney's Adult-Oriented Streaming Channel

Disney+ has been one of the top streaming services in terms of subscriber growth. The platform may have another trick up its sleeve to gain more subscribers with adult-oriented content coming to the platform soon.

What To Know: Walt Disney Co DIS is planning to launch Star, a streaming service aimed at adults as part of its Disney+ streaming platform, according to The Guardian. This was a catalyst that was mentioned by Disney blog InsidetheMagic in November and was highlighted in the company's December presentation.

Star will debut Feb. 23 with original shows like “Big Sky” and library content like “Pretty Woman,” “Family Guy,” and “Ugly Betty.” The content will come from brands like Disney, 20th Century Studios, ABC and Searchlight Pictures.

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A two-step parental control system involving age ratings will be used for the platform that has prided itself in having nothing rated over PG-13.

Star will launch in Europe first with planned launches for Singapore, Australia, New Zealand and Canada, according to Business Insider. Eastern Europe, Japan and Hong Kong will be launch locations later in 2021. No time frame was given for the U.S. adding Star content.

The cost for Disney+ will increase for customers that have Star from around $8.36 a month to $11.15 a month in the U.K.

Related Link: Why 4 Analysts Think Disney Can Thrive Now And After The Pandemic

Why it’s Important: Disney+ launched in the United Kingdom last May and was the fastest-growing streamer in the U.K., making up 38% of new subscriptions compared to Amazon.com AMZN with 25% and Netflix Inc NFLX with 19%.

In the U.K., Netflix and Amazon Prime lead the way with 12.8 million and 11.4 million respective subscribers. Disney+ ranks third with 3.5 million subscribers.

Disney reported 94.9 million subscribers for Disney+ in its recent earnings report. Netflix has over 200 million global subscribers.

The launch of Star could be a key for Disney’s international streaming growth. Disney wants to hit 300 million to 350 million subscribers globally by the year 2024.

Roundhill Investment's Mario Stefanadis told Benzinga Star was a big reason why Disney is included in the new Roundhill Streaming Services ETF SUBZ even without getting the majority of its revenue from streaming. 

DIS Price Action: Shares of Disney were down 2% to $183 on Thursday.

Family Guy/ Disney, Fox.