Walt Disney shares jump more than 11%, after announcing a rival service to Netflix

Walt Disney shares jumped sharply on Friday after the American entertainment company announced a new streaming service for video and TV shows, as the entertainment giant intends to compete with Netflix.

Walt Disney said its television service would be named "Disney Plus" and would cost about $6.99 a month or about $69.99 a year, less than Netflix's.

Disney has confirmed that the service will start in the US market on November 12 and will expand later in all markets worldwide.

This comes at a time when Netflix announced an increase in its service cost announced earlier this year, from $11 to $13 a month.

Disney CEO and chairman, Bob Iger, announced that "Disney Plus" will be a top priority for the company and will be child-friendly in the sense that the content presented will not harm them.

Disney will offer up to 18 of 21 Pixar films on different seasons to attract all family segments, including children, Eger added.

Through this new service, the company will also offer films and TV shows owned by Fox and Disney itself in addition to other videos and films.

In terms of trading, by 19:29 GMT, Walt Disney shares jumped 11.5% to $129.9, hitting a high of $130.9 and a low of $126.3.