Disney made some huge announcements during its Investor Day event that left many people very happy and others a bit down in the dumps, as Disney stocks jumped while Netflix stocks dropped.
Following the reveal of the Disney+ streaming platform, including the low price point for consumers, Disney stock jumped 10 percent this morning in trading, according to Variety. Meanwhile, Netflix's shares dropped by 3 percent.
The big news from Disney's Investor Day meeting was that many of the older rumors about potential content proved to be true. Fans of Marvel will get numerous shows, including live-action series with Winter Soldier and Falcon, Scarlet Witch and Vision, and Loki. Star Wars fans will not only get The Mandalorian but also the relaunching of The Clone Wars. That's in addition to all the other Pixar and Disney originals headed to Disney+.
What really helped influence investors to add more money into the Disney stock was the $6.99 a month price point, which is half the cost of Netflix following the streaming giant's price hike this year. Also, for fans who love Hulu, there looks to be a bundle coming soon where viewers can subscribe to Disney+, Hulu and ESPN+ for one price.
Disney admitted there will be losses over the next three years, though, as it will lose $150 million in possible revenue before the service launches due to saving releases for Disney+ instead of other options.
Disney will also lose about $500 million a year by ending its Netflix relationship. However, the House of Mouse expects Disney+ to be profitable by 2024.
Disney+ makes it long-awaited debut on Nov. 12.