Another Streaming Newcomer Undercuts Netflix
Since its latest price hikes went into effect earlier this year, Netflix (NASDAQ: NFLX) has been charging subscribers $12.99 per month for access to its most popular plan. That may not seem like an outrageous rate given the fact that Netflix is the dominant service on the streaming market, and some competitors, including AT&T's HBO Now, are in the same ballpark. Yet all of a sudden, Netflix's current price is looking a bit too high.
That's thanks in part to the new competition offered by Walt Disney's (NYSE: DIS) Disney+. The entertainment giant's new streaming service will cost just $6.99 per month when it debuts in November, and Disney will also offer Disney+, Hulu, and ESPN+ in a bundle for $12.99 per month. Combined with a rough quarter for growth following the Netflix price increase, this new competition suggests that Netflix has a pricing problem. And now it's getting worse, because Apple (NASDAQ: AAPL) is looking to undercut Netflix, too.
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Source Fool.com
