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.

Image source: Getty Images.

Continue reading

Source Fool.com