Netflix’s market value dropped on Friday by $ 8 billion within minutes after its rival Walt Disney announced the launch of cheaper service.
World’s leading entertainment company Walt Disney announced yesterday the launch of the new service “Disney Plus Video,” starting November 12 at the cost of $ 7 a month or $ 70 annually.
Disney’s service holds a competitive advantage over Netflix, which costs $ 9 per month.
Netflix shares dropped 5 percent to record $ 349.36, with a market value of $ 152.5 billion, $ 8 billion less than yesterday’s close.
However, Walt Disney’s value increased by $ 25 billion to settle at $ 235 billion from $ 154.735 billion earlier in the session.