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Disney shares rocket higher after unveiling streaming cheaper than Netflix | CNBC

Disney shares jumped on Friday after the company announced its Disney+ video streaming service would be $6.99 a month, two dollars a month cheaper than Netflix’s basic subscription.

“I’m pretty optimistic about the ability for this thing to work. Particularly when you make it accessible because of the content we’re putting on, because of the user interface and because of the price,” CEO Bob Iger told CNBC’s David Faber in an interview Thursday.

Shares of Disney surged 11.5% on Friday, its best single day of trading since May 2009. Netflix shares traded lower by 4.5%.

Disney+ will roll out in the U.S. on November 12, and within the next two years, the platform will be available “in nearly all major regions of the world.” The pricing on the ad-free service is surprisingly low — $6.99 per month and $69.99 annually (or $5.83 per month). That’s lower than Netflix, which raised prices on its standard plan from $10.99 to $12.99 per month. Netflix’s basic plan is $8.99 a month.

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Disney shares rocket higher after unveiling streaming cheaper than Netflix.