OnDemand WTP Pricing Research

Disney Pricing vs. Netflix Might Not Be as Big an Advantage as Some Think | TheStreet

Disney’s (DIS – Get Report) just-announced new streaming video plan will undercut the pricing for Netflix’s (NFLX – Get Report) most popular plan by almost half, and many have cited this aggressive pricing as a sign that the Mouse House’s offering will provide stiff competition for Netflix.

But Stifel analysts think the difference in pricing might actually not be as stark as Disney’s $6.99 monthly pricing vs. Netflix’s $12.99 cost for its Standard plan might suggest.

Stifel analysts Scott W. Devitt and D. Logan Thomas reiterated their buy rating on Netflix and their $400 price target on its stock in a note on Sunday, and suggested that Friday’s 4% decline in Netflix’s share price following the unveiling of Disney’s plans was “overdone.” (Netflix shares were down another 1.7% to $345.13 on Monday, ahead of the release of streaming giant’s first quarter earnings report on Tuesday).

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Disney Pricing vs. Netflix Might Not Be as Big an Advantage as Some Think – TheStreet.