There was very big news recently in the battle for streaming supremacy. Disney just announced a deal that would offer their new streaming service to Verizon customers for free for one year. This is a massive setback for Netflix. News of the deal between Verizon and Disney caused Netflix stock to tumble. The deal will allow millions of Verizon customers the chance to test out Disney+. After watching it for one year, there is a very good chance that many of those people will choose to start paying for Disney+ after their free trial offer is finished. That is what Disney is hoping will happen.
There are some experts in the financial world who are predicting that Disney+ will overtake Netflix in terms of overall subscribers as early as 2022. It remains to be seen if that will be the case. There is no question that Disney has an enormous catalog of shows and movies that stretches back for decades. Netflix is losing a lot of their biggest shows because the companies that own the rights to those shows are starting their own streaming services. The news that Disney+ will now be available to Verizon customers for the next year had to make Netflix execs sick to their stomach.
The Disney and Verizon deal shows that the House of Mouse is not fooling around. They are going right after Netflix in a way that the streaming giant might not have been prepared for. The reaction to the deal on social media has been very positive so far. Many Verizon customers are very excited that they will soon be able to enjoy Disney+ when it finally debuts November 12th. There are three groups of people who will qualify to receive the one year of Disney+ for free. A person needs to subscribe to Fios home Internet, wireless service that is 5G unlimited and wireless service that is 4G LTE.
Netflix will need to pull a few rabbits out of their hat very quickly to help slow down the momentum that Disney is generating. They are making all the right moves so far. They have also generated a lot of pre-launch hype for the new platform thanks to the trailers for “The Mandalorian.” This is a new Star Wars related series that will premiere the same day that Disney+ launches. The future does not look very promising for Netflix. Most analysts are advising people to stay away from Netflix stock.
