Netflix, Roku, and Disney Shares Drop After Apple Announces New, Cheaper Streaming Service

Now that the streaming wars has transitioned to television, almost every major player is trying to put together a bundle that will entice consumers to choose their service over their competitors. Although they’re late to the party, Apple has introduced a new streaming service with a price point that undercuts its rivals. 

Apple first announced its ad-free streaming service in March of this year. Yet, the company didn’t give Apple TV+ a price until today when it revealed that the family subscription will only cost users $4.99 a month. This is lower than Disney+, Amazon Prime Video, Hulu, Netflix, and HBO. According to Marker Insider, this news led to a drop in shares for Disney, Roku, and Netflix. Disney’s stock took the smallest hit dropping just 2.76%. The Mouse was followed by Netflix which is down 3.25%. But Roku saw the biggest change with its shares falling 12.62%. 

Roku’s dramatic fall is rooted in the fact Apple is cutting into their main product. What sets Roku apart is its focus on smart TVs. Yet, Apple announced that one who buys a Mac, iPhone, or Apple TV will get a free year of Apple TV+ that will seamlessly integrate into Apple products. Also, the Roku smart TV offers access to apps like Netflix, HBO, and Hulu which will help these companies keep their consumers. 

Apple TV+ has inked partnerships with celebrity creators like Jennifer Aniston, Oprah Winfrey, Steven Spielberg, and Jason Momoa. The service will be accessed through an app on any Apple device and it will be introduced to the world on Nov. 1.