Netflix, Disney, and Roku tumble after Apple announces its streaming service will be cheaper than rivals


Apple‘s new streaming service is shaping up to cost less than its competitors.

Shares of Disney,Netflix, and Roku slid on Tuesday after Apple announced its TV subscription offering would carry a modest price tag of $US4.99 per month.

Rivals in the US cost at least a few dollars more: Disney Plus costs $US7 a month, and Amazon Prime Video costs at least $US9 a month. Hulu costs $US6 a month for its basic plan, while Netflix and HBO each offer their services for more than $US10.

Disney is also going to offer a bundled service that includes Disney Plus, ESPN Plus, and ad-supported Hulu for $US13.

In Australia, Netflix starts at $9.99 a month and Disney Plus will cost A$8.99 when it launches on November 19.

Here’s how much each company was trading down following the announcement on Tuesday, as of 3:22 p.m. ET:

Apple also said customers who buy a Mac, iPhone, or Apple TV will receive a free year of Apple TV Plus. The company’s streaming service has been widely viewed as one of its efforts to diversify its services business.

Roku sells smart TVs and streaming players that allow people to access a variety of streaming platforms including Netflix and Hulu. It also offers its own ad-supported TV and movie service called The Roku Channel.

Apple’s announcement comes as the streaming space is bracing for the launch of several new platforms. AT&T is expected to roll out a streaming service called HBO Max, while Comcast is planning to introduce its own ad-supported platform.