Analyst lays out six reasons why the new Disney streaming service will eat Netflix's lunch

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Analyst lays out six reasons why the new Disney streaming service will eat Netflix's lunch
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Disney+ is set to launch in November. Needham said Disney's streaming customers will 'mostly come' from Netflix because 'US consumers have shown a reluctance to add' additional streaming services.

The company's new streaming service, Disney+, is set to launch in November. Needham said Disney's streaming customers will "mostly come" from Netflix because "US consumers have shown a reluctance to add" additional streaming services.

Disney announced Tuesday that it would offer a bundle of Disney+, ESPN+ and ad-supported Hulu for $12.99 per month, which is the same cost as Netflix'sThis price difference is one of the main reasons Disney is set to attract Netflix's customers, according to Needham. The five other reasons the financial firm listed are:Disney's current customer base lowers customer acquisition costs.Disney's strong balance sheet and cash flow gives it "more staying power" than Netflix.

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