Disney, Netflix, Amazon Video could soon enter price war, analyst predicts
Netflix falls short in subscriber numbers
CFRA Research media and entertainment analyst Tuna Amobi says services like Netflix and Disney+ have become more alert to the impact of inflationary pressures.
Reacting to Netflix missing its growth forecast, CFRA Research media and entertainment analyst Tuna Amobi predicted that current price competition in the international market could break out domestically and force other services like Disney+ and Amazon Prime Video to enter a price war.
TUNA AMOBI: I think one of the things that we have become more alert to is the potential impact of inflationary pressures on pricing…
And what we're seeing, for example, in markets like India, where Netflix just dropped the price of their basic plan by 60% in the face of competition from Amazon Video and others, I think what it suggests to me is that there is a likelihood of price competition breaking out in international markets and potentially coming into the U.S. with the demand elasticity that we're seeing.
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CFRA Research media and entertainment analyst Tuna Amobi reacts to Netflix missing its growth forecast.