Netflix Shares Dip After Verizon Reveals Disney Streaming Promotion

Netflix shares dropped nearly 3% in Tuesday morning trading after Verizon rolled out a promotion that will give its wireless customers one free year of Disney+.

Verizon will become the exclusive wireless carrier to offer a year free of Disney+ to all new and existing 4G LTE and 5G unlimited wireless customers. The telecom giant will also offer 12 months of Disney+ to its new Fios Home Internet and 5G Home Internet customers.

Disney+ launches November 12 at $7 a month or $70 for a full year. It will join Apple TV+ (launching November 1) and upcoming services from WarnerMedia and NBCUniversal in a wave of new alternatives to Netflix. The increased competition has worried many Netflix investors and was acknowledged by the streaming leader’s management team during last week’s quarterly earnings call.

Stock in Netflix, which has slipped about 15% in 2019 to date, fell to about $270 a share. Disney shares rose nearly 2% to $132.50.

“Giving Verizon customers an unprecedented offer and access to Disney+ on the platform of their choice is yet another example of our commitment to provide the best premium content available through key partnerships on behalf of our customers,” Verizon CEO Hans Vestberg said. “Our work with Disney extends beyond Disney+ as we bring the power of 5G Ultra Wideband technology to the entertainment industry through exciting initiatives with Disney Innovation Studios and in the parks.”

“The launch of Disney+ kicks off a new era of streaming for The Walt Disney Company, bringing nearly a century’s worth of content from our iconic studios to consumers directly,” said Kevin Mayer, chairman of Disney’s Direct-to-Consumer & International unit. “We’re excited to share this moment with Verizon and bring Disney+ to the millions of customers across its award-winning wireless network.”