Piper Survey Shows Limited Risk To Netflix From Disney Streaming Service
Piper Jaffray asked 1,536 U.S. Netflix (NFLX) subscribers if they would subscribe to both Disney's (DIS) new streaming service and Netflix, only Netflix or only Disney+, analyst Michael Olson tells investors in a research note. Piper indicated that the Disney+ price point is $7 per month, which it believes will prove to be only an introductory price.
The results show that 73% of U.S. Netflix subscribers do not expect to subscribe to Disney+, 20% expect to subscribe to both services, and only 7% indicated that they will cancel Netflix and subscribe to Disney+, Olson tells investors in a research note. The results suggest Netflix's risk of share loss is limited to a small percentage of its base, concludes the analyst.
As such, he expects Netflix to continue to "capture a significant portion of the tidal wave of traditional content dollars that are migrating to streaming." Olson maintains an Overweight rating on Netflix shares with a $440 price target.
The stock closed Friday down $1.71 to $361.04.
Disclosure: None