Disney+ has been rolled out for a couple of weeks, and some analysts might consider it to have a significant impact on Netflix subscriptions. Business Insider published a report in which two different Wall Street analysts had announced clients not to hurry to buy Netflix stock.
Analysts don’t see a significant increase in Disney+ subscriptions over Netflix
Piper Jaffray analyst, Michael Olson, explained how he hadn’t seen yet a boost in the people who plan on canceling Netflix and choose Disney+. Olson drew this conclusion by surveying 1,00 active Netflix subscribers. He said: “We have not seen an increase in the percentage of Netflix subscribers who expect to cancel Netflix in favor of Disney+. [..] most existing Netflix subscribers appear to be trending towards multiple streaming video subscriptions.”
In addition to Olson’s statement, analyst Mark Kelley had a more intriguing opinion. He said that Netflix numbers are keeping their high rates, but in the obscuration of an immense Disney+ release shortly this month.
He detailed: “Despite Disney+’s strong launch, Netflix’s domestic app download trends remain within historical bounds even with YoY growth deceleration from the prior week.” Moreover, Kelley expressed his belief that the investors will remain cautious until reported results would indicate the same thing. So, both analysts keep their neutral opinion on Netflix, given interests around estimate and capital concentration.
Disney+ might eventually outperform Netflix
According to the first reports, they indicated Disney+ would score 10 million first-day sign-ups for its streaming service. The new OTT service ended up releasing November 12th worldwide. Netflix, then, took a firm score in the market the day after but has since rebounded.
At the end of the week, the stock was still hitting $310,48/share, down 0,39 points from yesterday. Netflix came even with an official statement expressing its opinion. The post reads: “The launch of these new services will be noisy.”
Eventually, Disney+ is expected to have a significant impact on Netflix, and many subscribers will choose it over Netflix.