Disney says its new streaming service, Disney Plus, will cost $6.99 per month when it launches in the U.S. on November 12.
That is cheaper than rival Netflix, which charges $13 per month for its most popular streaming plan. But the Disney service has a narrower focus on family-friendly shows and movies.
The company is announcing details of its long-awaited streaming service at an event in Burbank, California, on Thursday.
The streaming service is expected to take on rivals Netflix, HBO Go and Showtime Anytime. Disney also owns a controlling stake in streaming service Hulu.
Disney ended a lucrative licensing relationship with Netflix in order to create the streaming service and faces challenges as it builds a service to compete with the entrenched streaming leaders.