It certainly didn’t take long for Netflix to feel the heat of the recently announced Apple’s original TV service, Apple TV+, with its shares falling by more than 3% on Tuesday.
Apple announced that its subscription TV service will launch in November and will be free for a year for customers who buy a Mac, iPhone or Apple TV.
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Apple’s streaming product, Apple TV+, was expected, but consumers didn’t know how much they would be paying. CEO Tim Cook said the ad-free service will cost $4.99 a month for the whole family. Providing original content via subscription is the company’s latest effort to bolster its services business as iPhone sales slow.
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Netflix raised the price of subscriptions in January. It now starts at $8.99 a month. The most popular offering costs $12.99, and its premium plan is $13.99.
The announcement from Apple comes two months after Netflix’s earnings report showed a rare loss in U.S. subscribers and a big miss on new international subscriptions. The stock is now down 18% over the past year.
Shares of other companies in the video streaming market also dropped on Tuesday. Roku, which makes a streaming device and supports its own channel as well as services from Netflix, Amazon and many others, plunged more than 9%. Disney, whose Disney+ service will cost $6.99 a month, dropped more than 2%.
