Did Disney Just Turn a Genius Move Into a Big Mistake?
Walt Disney (NYSE: DIS) blew the market away with its second-quarter earnings report. It not only beat Wall Street predictions on its top and bottom lines but also catapulted the entertainment giant into the lead over rival Netflix (NASDAQ: NFLX) by adding 14.4 million new subscribers to its Disney+ streaming service.
That's emboldening Disney to raise the price of Disney+ while introducing a new, lower-cost, ad-supported version as consumers have proven willing to pay for commercials. But pricing is a tricky business, and while tapping into this trend could be a genius move, Disney also might be making a big mistake by pricing both at a premium level.
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Source Fool.com
