On Friday, the 12th of April 2019, shares of Walt Disney Co. breached a record-breaking all-time-high after Wall Street analysts had suggested that its aggressive pricing would help its new video streaming service to better compete with Netflix Inc.
After Disney priced its streaming service, Disney+ at $6.99 per month, just a notch shy behind the premium plan of video streaming pioneer, Netflix’s share price had soured as much as 4 percent. Citing a havoc-scale optimism over Disney’s offerings, an analyst at global financial markets platform, Investing.com, Clement Thibault said, “Investors find a lot of promise in Disney’s offerings because it’s well positioned to fight the likes of Netflix for consumers’ money.
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”.
Over the Friday’s intra-day trading, shares of Disney had mushroomed over 10 percent to $128.26, adding more than $21 billion at a single day, while as of Thursday (April 11th), the company’s market capitalization was at $209 billion.
Followed by Friday’s (April 12th) market closure at a strong note, Disney officials had been quoted saying that they had been expecting to attract between 60 million to 90 million subscribers and to achieve profitability by 2024, although Netflix Inc., the video streaming tycoon had yet to post a convincible profit due to its strong expenditure on original content creation.