Analyst lays out six reasons why Disney+ will eat Netflix’s lunch

The new Disney+ streaming service will lure customers from Netflix and win the direct-to-consumer streaming wars, according to Needham. Netflix’s service starts at $8.99 a month. This price difference between the most basic versions of Netflix and Disney+ is one of the main reasons Disney is set to attract Netflix’s customers, according to Needham. The five other reasons the firm listed are:Disney will have most Pixar, Star Wars, Marvel and Disney princess films available at launch. WATCH: Disne


The new Disney+ streaming service will lure customers from Netflix and win the direct-to-consumer streaming wars, according to Needham. Netflix’s service starts at $8.99 a month. This price difference between the most basic versions of Netflix and Disney+ is one of the main reasons Disney is set to attract Netflix’s customers, according to Needham. The five other reasons the firm listed are:Disney will have most Pixar, Star Wars, Marvel and Disney princess films available at launch. WATCH: Disne
Analyst lays out six reasons why Disney+ will eat Netflix’s lunch Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: jesse pound, kif leswing
Keywords: news, cnbc, companies, eat, earnings, analyst, reasons, lunch, lays, netflixs, streaming, wars, service, billion, customers, according, disney, netflix


Analyst lays out six reasons why Disney+ will eat Netflix's lunch

The new Disney+ streaming service will lure customers from Netflix and win the direct-to-consumer streaming wars, according to Needham.

The firm said customers will “mostly come” from Netflix because “US consumers have shown a reluctance to add” more streaming services.

Disney, which is launching the service in November, announced Tuesday it will offer a bundle of Disney+, ESPN+ and ad-supported Hulu for $12.99 per month, the same price as Netflix’s standard plan.The stand-alone Disney+ will cost $6.99 per month or $69.99 for a year. Netflix’s service starts at $8.99 a month.

This price difference between the most basic versions of Netflix and Disney+ is one of the main reasons Disney is set to attract Netflix’s customers, according to Needham. The five other reasons the firm listed are:

Disney will have most Pixar, Star Wars, Marvel and Disney princess films available at launch.

Disney’s current customer base lowers customer acquisition costs.

The bundle with ESPN+ and Hulu will lower churn.

Disney’s strong balance sheet and cash flow gives it “more staying power” than Netflix.

Disney already has several content studios.

Needham maintained its hold rating on Disney, citing concern about how the $71 billion acquisition of Fox will affect earnings in the near term. Disney on Tuesday missed expectations on the top and bottom lines for its fiscal third quarter, and shares were down 5.5% Wednesday morning.

The company generated $1.35 in earnings per share on $20.25 billion in revenue as it continues to integrate Fox’s entertainment assets. Analysts expected $1.75 in earnings per share and $21.47 billion in revenue, according to Refinitiv.

WATCH: Disney’s Iger on earnings miss and company’s role in streaming wars


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: jesse pound, kif leswing
Keywords: news, cnbc, companies, eat, earnings, analyst, reasons, lunch, lays, netflixs, streaming, wars, service, billion, customers, according, disney, netflix


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