Disney shares rocket higher after unveiling streaming cheaper than Netflix

Disney shares jumped on Friday after the company announced its Disney+ video streaming service might be $6.99 a month, two dollars a month cheaper than Netflix’s basic subscription.

“I’m pretty optimistic about the ability with of which thing to work. Particularly when you make of which accessible because of the content we’re putting on, because of the user interface along with because of the cost,” CEO Bob Iger told CNBC’s David Faber in an interview Thursday.

Shares of Disney surged 11.5% on Friday, its best single day of trading since May 2009. Netflix shares traded lower by 4.5%.

Disney+ will roll out within the U.S. on November 12, along with within the next two years, the platform will be available “in nearly all major regions of the earth.” The pricing on the ad-free service will be surprisingly low — $6.99 per month along with $69.99 annually (or $5.83 per month). of which’s lower than Netflix, which raised prices on its standard plan via $10.99 to $12.99 per month. Netflix’s basic plan will be $8.99 a month.

“Disney surprised on the upside at its investor meeting yesterday, providing more financial disclosure along with revealing a more content rich streaming service than previously expected,” J.P. Morgan analyst Alexia Quadrani said in a note to investors. “In addition, management provided a target for Disney+ of 60m-90m subscribers by F2024, on the higher end of our expectations, which we believe were already above consensus.”

Disney+ will also have multiple movies along with TV series of which are exclusive to the service. Those include several series via Marvel along with Star Wars. Disney said of which expects of which will spend about $1 billion in 2020 on original content for the platform along with $2 billion by 2024.

Disney’s stock closed at $116.60 a share on Thursday.

CNBC’s
Yun Li
along with
Sarah Whitten
contributed to of which report.