Netflix’s market value dropped $8 billion after Disney announced news about its upcoming rival streaming service.
Though Netflix has taken over many of our lives in recent years with a whole host of binge-worthy, on-demand content, the company could be in trouble once Disney’s new service, Disney+, launches.
The company released new details about the platform at its 2019 Investor Day yesterday (April 11), announcing it will launch on November 12, at a price of $7 a month or $70 a year. Following its initial launch, it will be rolled out globally.
Their prices undercut Netflix, whose most popular US plan costs about $11 a month, Bloomberg report.
Shortly after the news broke, Netflix shares fell as much as 5 percent, to $349.36. The impact sent its market as low as $152.5 billion.
In contrast, Disney’s shares jumped to a record high, adding as much as $25 billion to their market value and bringing it to a total of about $235 billion.
Disney+ will be a compilation of the company’s various franchises, such as Pixar, Star Wars, Marvel, and National Geographic, which the company took ownership of as part of its acquisition of 21st Century Fox.
The franchises are each set to have their own landing pages on the platform, allowing users to navigate the page according to their preferences, Gizmodo report.
Similarly to Netflix, Disney+ will use an algorithm to present users with specific watch histories, with columns including Disney+ Originals, Recommended for You, and Continue Watching. Disney+ will also allow users to add series and movies to a personalized watch list.
Disney execs explained its films will become available on the platform directly after their home release. As a result, platforms that allow users to rent films, such as Amazon Prime and Apple, might lose some users to Disney+, where the films are included.
According to Gizmodo, the streaming service has secured partnerships with Roku and PlayStation 4 for streaming, but intends to make the platform available on smart TVs and game consoles in the future.
As well as using similar algorithms to Netflix, Disney+ will follow in the popular streaming service’s footsteps by creating original content. Variety report the first year of launch will include 25 original series, including Jon Favreau’s Star Wars-set The Mandalorian as well as a High School Musical series.
There will also be 10 original films and specials alongside its 400 library films, which include 18 Pixar titles, 100 recent movie releases from the Disney portfolio, nearly all of the Marvel movies and, within the first year, all the movies in the Star Wars franchise.
We’ll have to see if Netflix can hold on to its audience following the release of Disney+!
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