Shares of Netflix (NFLX) - Get Report were down 3.1% to $269.49 per share on Tuesday morning after Verizon (VZ) - Get Report announced that it will offer a full year of rival streaming service Disney+ (DIS) - Get Report for free to certain customers.
Starting Nov. 12 when Disney+ launches, Verizon will offer 12 months of the service to all of its new and existing unlimited wireless customers, as well as to new Verizon Fios Home Internet and 5G Home Internet customers. Disney's new direct-to-consumer streaming service will feature original and library content from the company's Disney, Pixar, Marvel, Star Wars and National Geographic studios. It will cost $6.99 a month.
"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," Verizon CEO Hans Vestberg said in a press release.
Investors are watching Netflix closely these days as the streaming wars heat up. Disney, Apple (AAPL) - Get Report , Comcast (CMCSA) - Get Report and ATT's (T) - Get Report HBO are all rolling out competing streaming services in the coming weeks and months, and could take market share away from Netflix.
Disney shares were rising 2.1% to $133.03 while Verizon shares were flat.
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