Streaming Battleground: Disney vs. Netflix

The Over-the-top (OTT) streaming war is intensifying. Netflix (NASDAQ: NFLX) built it and now others are going to milk it. After losing shows like "The Office" and "Friends," Netflix spent a huge amount to gain "Seinfeld." Netflix is trying to fill the huge gap after losing three of its top shows. On the other hand, Disney (NYSE: DIS) is launching its streaming service on Nov. 12.

It's far from a duopoly in streaming. In addition to Netflix and Disney, consumers can choose from Roku, Google, Amazon, Virgin Media which is owned by Liberty Global, and private companies with streaming services: BBC, All4, ITV, and Sky. We can expect Apple, CBS, NBC Universal, which is owned by Comcast to enter the streaming market very soon, too. Comcast is starting free OTT offerings for internet customers. Which entertainment company will win this battle?

A Disney+ plan will cost $6.99 per month and a bundle will cost $12.99 per month. The basic Netflix plan is $8.99 (Single Device) and the standard Netflix plan is $12.99 (Two Devices). Hence, Disney's stand-alone plan is lower than half the price of Netflix. Consumers will need to decide if they would pay $12.99 per month for three services or pay the same for a single video service. Disney is a three-headed monster with Disney+, ESPN+, and Hulu. Hulu offers a $5.99 subscription plan, cheaper than Netflix, as well as a no commercials plan for $11.99 that eliminates the majority of ad breaks. It has a subscriber base of 28 million and it has also partnered with music streaming giant Spotify.

Source Fool.com