Netflix Stock Drops After Disney+ Announcement

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Netflix Stock Drops After Disney+ Announcement

Walt Disney on Thursday announced their upcoming online streaming service- Disney+. The service will include the whole Disney library (namely marvel, Pixar, and Star Wars). In no time the news about Disney+ became a hot topic among the fans, and they are already excited to subscribe. The service will be launch in November this year.

The best part is the pricing of Disney+. It will cost $6.99 per month or $69.99 per year which is almost half of the current subscription plans of Netflix. Of course, this is not great news for Netflix, and the effect of this can also be seen in the company’s stocks.

Netflix Stock Drops After Disney+ Announcement

As per CNBC, Shares of Netflix dropped about 2% on following the announcement of Disney+. Two percent drop might not seem big, but that drop snipped $3.2 billion form company’s market value. It is the effect when the launch of Disney+ is six months away.

“Bottom-line, Disney+ features family content, while NFLX offers a much broader range of content with the majority of the most-searched content on the platform,” analysts from SunTrust wrote. “As such, we do not view Disney+ as a strong alternative to NFLX.”

Netflix Stock Drops After Disney+ Announcement

Netflix surely has to make some good strategy’s if it want to remain the king of Online streaming services. What are your thoughts about Disney+? Will you subscribe? Do let us know in the comments section below.


SEE ALSO:

Disney Plus: Exclusive Shows, Price, Launch Date

Falcon and Winter Soldier Confirmed on Disney Plus Streaming Service

Marvel Studios confirms WandaVision series for Disney+

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