Markets

Breakdown of the latest developments on the global exchanges
Apr 12, 2019, 12:00 PM GMT
#EarningsSeason

Disney Shares Hit an All-Time High on the Announcement of a New Streaming Service

The company's streak of aggressive expansion into new market niches was continued after it was announced that from mid- November the company is going to start a new streaming internet service. The news has many complications both for Disney and for the now-to-be new rivals – Netflix.

Apart from the numerous movies that are inlined for releases this year, such as Aladdin, Dumbo, Star Wars 9 and the new Avengers movie (Marvel is owned by Fox, which is property of Disney), all of them guaranteeing to bring box office money, the company is now going to make this fundamental move into the online streaming business, based on the quite successful business model of Netflix, which has grown quite rapidly in the past few years, owing to the success of its quality programs.

This is sure to increase the competition between the two companies, and as a result, the share prices of the two are bound to be rocked by frequent volatility outbursts, following every new movie/series release.

Disney's share price increased with 11.54% during Friday's trading session, reaching an all-time high of 130.06$ USD. Meanwhile, Netflix dropped with 4.49% on the news that Disney's streaming service is going to cost only 6.99$ per month. On the other hand, Netflix is currently charging its customers 13$ dollars for monthly subscriptions. The newly developing price war between the two is undoubtedly going to cause similar price fluctuations in the future.