Investing.com – The streaming industry, currently largely dominated by Netflix (NASDAQ :), will be upset within a few months due to the arrival of Disney on this market.
And although Disney has just announced the price of its offer when it published its quarterly results on Tuesday, it now seems too early to know if Disney will win the battle, but it is almost certain that the arrival of this giant will be a blow to Netflix will be.
But while Disney's bid has been revealed, Needham analyst Laura Martin estimates that the aggressive pricing of the Disney + service ($ 6.99 per month) and a bundle of Disney +, ESPN + and Hulu for $ 12 , 99 a month lets the fight win in advance.
The two offers, which will appear on November 12, do indeed appear tempting, with a range of content including Marvel superheroes, Pixar animation films, the "Star Wars" universe, and films and television series. Disney.
"We expect Disney to win (and lose Netflix) the battle for on-demand subscription video in the United States," Martin wrote in an analysis note published yesterday.
"American consumers must be reluctant to add an extra streaming subscription" to their monthly invoices, she says, concluding that "this means that the 20 to 30 million American subscriptions that Disney has planned for 2024 will come of mainly 60 million American Netflix subscriptions ".
It should also be noted that Netflix will also face competition from the new Apple TV streaming service (NASDAQ 🙂 TV +, which will be launched later this year, as well as newcomers AT & T (NYSE 🙂 and Comcast (NASDAQ:) in 2020.
And although these future competitors seem to pose a much less significant threat to Netflix than Disney, it will add extra weight to the shoulders of the streaming giant, which has prevailed in its market so far …
The fragile finances of Netflix, which constantly have to make huge investments to renew the catalog with home content, leave no mistakes and an excessive fall in the number of subscriptions can be the future of society. This is all the more true because the recent quarterly results of Netflix have already revealed some weaknesses in subscriptions, while currently no serious competitor is encountering the company on its market.
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