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Walt Disney shares touch all-time high on streaming plans; Netflix slips 4%

Reuters/ 13 Apr 19 | 01:54 AM

Shares of Walt Disney touched an all-time high on Friday after Wall Street analysts said the aggressive pricing of its new video streaming service could help it better compete with Netflix. Netflix’s shares fell about 4 per cent after Disney priced its streaming service, Disney+, at $6.99 per month, below the video streaming pioneer's basic plan of $8.99.

“Investors find a lot of promise in Disney’s offerings because it’s well positioned to fight the likes of Netflix for consumers’ money," said Clement Thibault, analyst at global financial markets platform Shares of Disney jumped 10 per cent to $128.26, adding $21 billion to the company's market capitalisation of $209 billion on Thursday.

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J P Morgan analysts also noted that Disney+'s interface appears similar to that of Netflix with personalisation of user profiles, recommended content, search capabilities and parental controls.

ALSO READ: Watch out Netflix, Marvel, monsters and 'Mandalorian' coming to Disney+ app

Disney+ will launch on November 12 in the US, featuring content from a host of Dis­n­ey brands including Marvel, Star Wars and Pixar as well as recently acqui­r­ed Fox properties such as “The Simpsons" and National Geographic programming. Disney said it expects to attract between 60 million and 90 million subscribers and achieve profitability in fiscal year 2024. 

It plans to plow a little over $1 billion in cash to finance original programming in fiscal 2020 and about $2 billion by 2024.

“It's still very early on, but the streaming war has officially begun. By fighting back with a competitive offering, Disney at least gives itself a chance to win in the streaming industry, rather than just losing user after user to other streaming services," Thibault said.

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