Netflix lowers price for South Korea subscribers

Lula Sharp
April 17, 2019

"Hulu is more competitive, or at least a more competitive threat than Disney+ because it is aiming at that broad, general entertainment viewing behavior that Netflix targets so effectively", Hargreaves added.

Global streaming giant Netflix has introduced a series of cheaper pricing plans for selected consumers in South Korea from this month, prompting questions over its pricing strategy applied differently depending on the region.

Disney is among some of the biggest names in the media and tech world gearing up to move into streaming, in what could be a major challenge to market leader Netflix.

The streaming company expects to add just 5 million subscribers globally next quarter, down 8 percent from the 5.45 million it added during the same period a year earlier, the company said in a letter to shareholders Tuesday. A monthly subscription will cost less than a month of Netflix, and those who sign up will get access to a large library of both classic Disney content and new originals.

Also coming to Disney+ are Fox favorites such as "The Princess Bride" and "The Sound of Music", as well as 30 full seasons of "The Simpsons." . "While it is smaller than Netflix, we think the Disney+ library will be deeper in terms of quality". The company's acquisition of Fox's assets has given it a majority stake in online streaming service Hulu, which is jointly controlled by Disney, AT&T's (T) WarnerMedia, and Comcast's (CMCSA) NBCUniversal.

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Amobi said Disney also has the potential to "bundle" its new product with Hulu and its recently launched ESPN+ sports streaming service to give consumers a wider choice of content. It will be available when the service launches.

"Netflix is balancing subscriber additions with a shift toward profitability", Geetha Ranganathan, an analyst with Bloomberg Intelligence, said in a report.

The company projected that it would have from 60 million to 90 million subscribers by that time, with two-thirds of them outside the United States. The company knows what people like and what people are willing to pay for, so no one should be surprised when Disney continues to milk those megafranchises to get Disney+ up and running.

Laura Martin, analyst at Needham & Co., disagrees, saying Disney with its well-known brands and franchises will eventually overwhelm Netflix. In a three-hour event Thursday, Disney revealed the release date, price, shows, and movies planned for its Netflix competitor. Netflix said it employed the same strategy it has always followed to achieve record growth: "When we please our members, they watch more and we grow more". Following its U.S debut, Disney plans to expand the service globally with the goal of being in almost all major regions of the world within two years.

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