Netflix shares up as it smashes subscription rates
Streaming giant Netflix has entered the discount subscription market with a competitive offering of $6.99 with adverts. It beats the Disney+ offering of $7.99, but that company has yet to respond.
(Video Transcript)
The streaming giant Netflix has launched itself back into the budget end of the streaming market in November.
It's introducing a less expensive offering with adverts as it fights to keep viewers on its platform. In terms of charging, it's decided to go down to $6.99 a month for this new rate. That works out, according to the BBC, at £4.99 a month. For us here in the UK, it'll occur in the UK, the US, Canada, Mexico and Australia and a number of other countries on its list.
Disney+ charges, £7.99 here in the UK. So that is substantially more but it's $7.99 in the United States. That's an awful lot closer. But the structural way they've done it does appear to be appealing for Netflix investors.
Netflix share price chart
Let's take a look at the share price chart which has gone up in today's session.
In the context of what we've got here in terms of the blue and the red boxes, the blue box is the point we were at the beginning on the left hand side here at the start of COVID, at 290.39. Netflix made a big advance in terms of subscribers during the lockdown, and it rose 141%.
Since then, the going has been tough because Disney's launched itself firmly into this market, and it did so with that relatively cheap offering for Disney+ subscribers.
Recently, we've seen this stock all the way down. This is Netflix at $162, well below the point it was at going into the COVID lockdowns. Since then there has been this little bit of a rise. But if you look at what's happening in the last few days or so, we're now in a third day in a row of gains.
We're expecting the stock to rise at the start today in the US markets, it's up a further 1.36% to close pretty much the top of the candle late last night all-sessions on the IG platform when we heard about this news, so investors do seem to be appreciating this and traders are betting this stock up.
If you are long on this at 23535 your stop would go in this area down here around about the sort of $220 level if you are long on Netflix going into the start of today's US session.
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