Disney (NYSE:DIS)’s Streaming App Will Cost ‘Significantly Less Than Netflix’ | Benzinga

Disney’s streaming platform will cost “significantly less” than Netflix, but probably won’t be as low as the CBS Corporation All Access platform, Ryvicker said in a note. The initial pricing strategy is intended to convert Disney’s “gigantic customer base” into subscribers, the analyst said. Over time, the price will be moved higher as Disney adds more content to the platform, according to Wells Fargo. The pricing strategy should be viewed as an “incremental positive,” since streaming video stocks tend to trade on subscriber numbers, Ryvicker said.

Disney also emphasized that it doesn’t need to seek out and acquire any new media assets, the analyst said. Thursday’s report indicated that Disney’s current cash will be allocated toward organic investments, she said.

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Disney (NYSE:DIS)’s Streaming App Will Cost ‘Significantly Less Than Netflix’ | Benzinga.