On Nov. 12, Walt Disney (NYSE: DIS) plans to launch a video-streaming bundle that includes Disney+, Hulu, and ESPN+ for $12.99 a month. Individually, Disney+ costs $6.99, Hulu costs $5.99, and ESPN+ costs $4.99, so customers save about $5.
Moreover, Disney's combo package is priced the same as Netflix's (NASDAQ: NFLX) standard plan, and Netflix lacks live sports or Disney's newest content. Netflix will also lose its existing Disney content over the next two years.
Colling Media recently conducted a survey to gauge interest in Disney's new offering, and 46% of respondents were either likely or very likely to subscribe to the entertainment giant's bundle.
Disney's move comes at bad time for Netflix, which recently admitted that its price hikes throttled its subscriber growth in its second quarter, when its U.S. users declined by 130,000 to 60.1 million. Nearly a quarter of Netflix subscribers also think the service is too expensive, according to a Kill the Cable Bill survey from July.
Netflix isn't doomed yet, but Disney's big bundle -- which offers a formidable library of content for all ages -- could be the streaming pioneer's worst nightmare.
Leo Sun owns shares of Walt Disney. The Motley Fool owns shares of and recommends Netflix and Walt Disney. The Motley Fool has the following options: long January 2021 $60 calls on Walt Disney and short October 2019 $125 calls on Walt Disney. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com