Verizon Inks Deal For Disney+, Netflix Investors Show Concern
Shares of Netflix Inc (NASDAQ: NFLX) fell Tuesday morning as the streaming video wars intensified with a free offer from Verizon Communications Inc. (NYSE: VZ)
Verizon said Tuesday it will give customers free one year access to Walt Disney Co (NYSE: DIS)'s new streaming platform, Disney+. The promotion will be made available to existing and new Fios Home Internet and 5G Home Internet customers. Verizon will make the promotion available across any platform as of Nov. 12.
"The launch of Disney Plus kicks off a new era of streaming for The Walt Disney Company, bringing nearly a century's worth of content from our iconic studios to consumers directly," Kevin Mayer, chairman of Disney's Direct-to-Consumer & International segment, said in a statement obtained by Variety. "We're excited to share this moment with Verizon and bring Disney Plus to the millions of customers across its award-winning wireless network."
Why It's Important
Some analysts previously called out Netflix for its high priced streaming video platform at a time when new rivals, like Apple Inc. (NASDAQ: AAPL), are offering free promotions. After Disney enters the race with its own free promotion, Netflix investors appear to be showing increasing signs of concerns given the stock's weakness Tuesday morning.
Teaming up with Verizon will give Disney immediate access to millions of households with the assumption many families will pay for the subscription after the trial year, according to CNBC.
Netflix traded lower by 2.8 to $270 per share at time of publication, while Disney's stock was up 2% at $133 per share.Related Links: Netflix Analyst Eyes Complications Of A 'Hit-Driven Business' Needham's Martin Talks Apple Services, Streaming Video Competition See more from Benzinga © 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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