Following the announcement of the long awaited launch of its streaming services and some positive reviews and comments about the proposed business where in they said that the aggressive pricing strategy of the video streaming services is good enough to help it rival the likes of Netfilx and Amazon, the shares of Walt Disney Co reached an all time high on Friday.
On the other hand, there was fall of about 4 per cent in the shares of Netflix, one of the major competitors of the streaming services from Disney – Disney+, slated to be launched after this year, following the announcement by the veteran entertainment company and the aggressive pricing at $6.99 per month. That price is lower than the basic price plan of Netflix at $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 Investing.com.
The market capitalization of Disney increased by was at $210 billion from $209 billion on Thursday after a 10 per cent surge in its shares which reached $128.26.
Analysts at J.P. Morgan also noted that the personalization of user profiles, recommended content, search capabilities and parental controls offered by the Disney+ through its user interface is very similar to that of Netflix.
November 12 of this year has been affixed to be launch date for Disney+ services in the United States and subscribers would be offered a wide range of content from the Disney brands such as Marvel, Star Wars and Pixar. In addition, content that the company has come to own because of its recent acquisition of Fox properties such as “The Simpsons” and National Geographic programming would also be made available to the subscribers.
The streaming service is expected to reign in subscribers anywhere between 60 million and 90 million and would potentially become profitable by the fiscal year 2024, Disney said. The company has also announced its plans to invest a little over $1 billion in cash for the creation of original programs during the fiscal year 2020 and while investing 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.
The streaming market is getting increasingly crowded but is also very lucrative at the same time and Disney immediately finds a place of prominence there because the company owns a large number of big moves. It would also a separate identity for Disney+.
Companies are also investing heavily to increase and capture market share. For example, this year, $15bn was spent on new content by Netflix. Apple TV+ service, the streaming service from Apple was launched last month with help of Oprah and friends assisting the company in the creation of unique and exclusive content.
(Source:www.reuters.com)
On the other hand, there was fall of about 4 per cent in the shares of Netflix, one of the major competitors of the streaming services from Disney – Disney+, slated to be launched after this year, following the announcement by the veteran entertainment company and the aggressive pricing at $6.99 per month. That price is lower than the basic price plan of Netflix at $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 Investing.com.
The market capitalization of Disney increased by was at $210 billion from $209 billion on Thursday after a 10 per cent surge in its shares which reached $128.26.
Analysts at J.P. Morgan also noted that the personalization of user profiles, recommended content, search capabilities and parental controls offered by the Disney+ through its user interface is very similar to that of Netflix.
November 12 of this year has been affixed to be launch date for Disney+ services in the United States and subscribers would be offered a wide range of content from the Disney brands such as Marvel, Star Wars and Pixar. In addition, content that the company has come to own because of its recent acquisition of Fox properties such as “The Simpsons” and National Geographic programming would also be made available to the subscribers.
The streaming service is expected to reign in subscribers anywhere between 60 million and 90 million and would potentially become profitable by the fiscal year 2024, Disney said. The company has also announced its plans to invest a little over $1 billion in cash for the creation of original programs during the fiscal year 2020 and while investing 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.
The streaming market is getting increasingly crowded but is also very lucrative at the same time and Disney immediately finds a place of prominence there because the company owns a large number of big moves. It would also a separate identity for Disney+.
Companies are also investing heavily to increase and capture market share. For example, this year, $15bn was spent on new content by Netflix. Apple TV+ service, the streaming service from Apple was launched last month with help of Oprah and friends assisting the company in the creation of unique and exclusive content.
(Source:www.reuters.com)
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