Investors believe Disney+ may not be as crushing as expected for rival Netflix.
Reuters reported that shares of Disney surged 8% since the launch of Disney+ one week ago, helped along by 10 million sign-ups for the service in its first day, however, during the same period, Netflix’s stock recovered from an initial slump and is now up nearly 3%, and investors are starting to bet that the two companies’ streaming offerings may be able to coexist.
Investors for months have viewed the looming launch of Disney+ as the most dangerous challenge yet to Netflix’s dominance of an increasingly crowded video streaming market. Disney’s stock has risen 27% since April when Disney+ was unveiled, while Netflix remains down 18%, and because Netflix dominates the market, it makes it the player with the most to lose.
Disney+ is the most important product launch in Bob Iger’s 15 years as CEO of Disney, and according to many, as he’s scheduled to retire this year, it’s also the riskiest.