How Does Disney+ Impact Investors?

Credit: The Street
Published on April 10, 2019 - Duration: 03:14s

How Does Disney+ Impact Investors?

At its annual investor day conference on Thursday April 11th Disney will unveil its Direct-to-Consumer video streaming service, Disney+.

The new streaming service combined with ESPN+ and Disney's controlling stake in Hulu will make it a major player in the video streaming industry, setting it up to compete with the likes of Netflix and Amazon's Prime Video.

There is still a lot we don't know about Disney's new Disney+ direct-to-consumer streaming service -- namely price, a specific launch date and what original content Disney will offer alongside its own TV and film library, but since Disney has one of the industries top intellectual property portfolios it has consumers and investors very excited.

In a recent note from analysts at Cowen, they stated in their base case that they believe that Disney+ reaches ~30 million global subscribers by FY21 year end.

To put that in perspective Netflix has ~139 million global subscribers at the end of 2018.

Additionally, on Wednesday April 10th, Disney was upgraded to Outperform at BMO Capital with the Analysts stating that Disney has both downside protection as well as several upside catalysts including the push into streaming and the new Star Wars lands at the Disney Parks in Orlando and California .

As Zev Fima.

Research Analyst at, points out, "the one thing investors do need to keep in mind is that building out a streaming service isn't cheap, so while we do expect to hear about costs at some point these investments had to happen eventually and 2019 is the perfect year to do it.

Disney can offset the added costs with its incredible slate of movies this year." Disney movies set to release this year include: Avengers:Endgame, Spider-Man Far From Home, Toy Story 4, the live-action Lion King, Frozen 2, and Star Wars Episode IX.

Most, if not all of these films are expected to bring in over a $1 billion dollars at the box-office, with some having a good chance at breaking box-office records.

Disney is up over 7% on the year and closed up 0.22% on Wednesday.

Disney and Amazon are holdings in Jim Cramer's Action Alerts PLUS member club.

Want to be alerted before Jim Cramer buys or sells DIS or AMZN?

Learn more now.


You are here

Recent related videos from verified sources

One Thing Investors Need to Know Before Investing in Cannabis 01:08
Credit: The Street - Published 6 days ago 

Don't Like Volatility? Steer Clear of These 3 Stocks -- ICYMI 02:56
Credit: The Street - Published 2 weeks ago 

Disney's 2019 Outlook 03:12
Credit: The Street - Published 2 weeks ago 

Is Cisco a Good Buy? 02:02
Credit: The Street - Published on April 15, 2019 

04-12-19_JC_DISNEY 00:51
Credit: The Street - Published on April 12, 2019 

Jim Cramer's Thoughts on Anadarko, Bank Earnings and Disney's Bob Iger 12:00
Credit: The Street - Published on April 12, 2019 

Debate on Millennials vs. Mortgages Is Heating Up -- ICYMI 02:30
Credit: The Street - Published on April 11, 2019 

Disney Needs to Add Color to Its Streaming Video Plans -- ICYMI 02:13
Credit: The Street - Published on April 3, 2019 

You might like