Walt Disney Co shares were up to 15 percent since when the company has announced its new idea of bringing up a new domain for streaming series and movies online, which would be for just $6.99 per month. This will make Netflix lose so many of its customers as the cost of Disney+ streaming will be half of what Netflix is charging the customers. Disney is planning to start its streaming service in November and provide the customers with family friendly content with a lower cost compared to Netflix, inc.
Netflix shares are up 2.7 percent since Disney’s announcement as the investors are very much least concerned about Disney+. A random survey of current 602 Netflix subscribers, shows that around 15 percent are waiting for Disney+ to enter into the market. Once, it comes, the entire 15 percent has planned to leave Netflix and join Disney+. If Netflix loses 15 percent of its customers, it will lose around 9 million customers, and eventually, it will attain a loss of $116.9 million per month, which will bring down Netflix’s value.
The more troublesome matter for Netflix investors is that 2.2 percent of the survey customers are on a strong note that they’ll cancel the Netflix subscription in favor of Disney+. Even if at all none of the customers actually leave, losing 2.2 percent of U.S. customers would make the company lose around 1.3 million users.
In addition to this, few have told that they’ll subscribe for both the streaming domains. This will help Disney+ to show their quality service and make them win over Netflix. Already, Disney is planning to provide the service at a lesser price. So, customers would probably opt for Disney+ as it would give an optimal service that too at a lesser cost. But eventually, all these would bring in a loss to Netflix.