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The retail sector may show that Disney can win the streaming wars

Nick Monte

Most people have at least one of these goals on their minds today: 

1) Take advantage of Black Friday sales.

2) Watch Chapter 4 of The Mandalorian. 

While Black Friday can be a prosperous opportunity for retailers like Walmart (WMT), Amazon (AMZN) or Target (TGT); it’s also make-or-break opportunity for others such as Macy’s (M), JCPenney (JCP) and Sears (SHLDQ). 

Similar to the way consumers are abandoning long-time retailers for larger heavyweights, the same dynamic can be seen in the streaming wars. 

Disney’s (DIS) new service is putting massive pressure on Netflix (NFLX). Disney is making a long term play to be the top streaming service, similar to how Amazon is feeling pressure from other major retailers online. 

“What you see is a lot of pressure … against companies like Netflix. You know, I don't know if we say ‘hold’ on that. But I will say that you're going to see a lot of pressure with companies like Netflix in the future because it's the same play as Amazon. You've got a lot of people finally saying -- let's get into this market as well.”

Various discounts and promotions could save Disney+ customers a substantial amount over a year, and Dipp Metzger pointed out that kids will not want to lose the service, which a good play on Disney’s part.

All of this could spell long term trouble for Netflix.

Noah Hamman, CEO of AdvisorShares, says, “I see Disney, the whole company overall not just the streaming service, being a positive opportunity in people's portfolio. Netflix could continue to have some challenges ahead … I think they'll struggle quite a bit.”