April 12, 2019, 09:50
Updated on April 12, 2019 10:10
Netflix Inc. has lost up to $ 8,000 million in market capitalization in a few minutes trading on the news of the launch of the next and cheapest server of its competitor Walt Disney Co.
On Thursday afternoon, Disney released details of the service and announcements that it will begin on November 12 at a price of $ 7 per month or $ 70 per year. The news is weakening Netflix, whose most popular plan in the US costs about $ 11 a month.
Netflix shares fell by as much as 5% to $ 349.36, soon after opening in New York on Friday and the market fell to 152.5 billion dollars.
Analysts were optimistic about the increase in Netflix's subscription prices, which did not seriously affect its solid base of 60 million customers in the US. who has been willing to spend money for Disney + for years, as he tries to gain a market share.
Disney went the other way. Its stock rose again to a record level and reached 25,000 million dollars of market value, totaling about 235,000 million dollars.
The entertainment giant introduced Disney + on the stage that was used to shoot the original movie Mary Poppins, by presenting an online product in the Apple style. The service will live or die according to its content, and there's Disney made a big statement. Disney + will have arsenal-friendly programming, including 13 classic animated films, 21 feature films Pixar, original series and materials from their franchises from Marvel and Star Wars.