Disney stock rose 11.5%
The stock of media behemoth the Walt Disney Company (DIS) surged 11.5% on April 12 after it released the details of its highly anticipated streaming service, Disney+, at an investor conference on April 11. The service, which will launch in mid-November and cost $6.99 per month (or $69 annually), is expected to threaten the dominance of top streaming service providers Netflix (NFLX) and Amazon (AMZN). Netflix shares dropped 4.5% on April 12 after Disney unveiled the pricing of Disney+.
Bob Iger, Disney’s chair and CEO, told CNBC that he’s positive about the content, user interface, and pricing of Disney+. Disney expects the service to add ~60 million–90 million subscribers by the end of fiscal 2024, which is likely to give a significant boost to Disney’s revenue.
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Disney+ will offer a library of TV shows as well as movies from iconic brands such as Disney, Pixar, Marvel, Star Wars, and National Geographic. Disney’s acquisition of Fox’s assets will also add hit movie content such as Avatar to its already enriched portfolio.
Original live-action series such as The Mandalorian and Pixar’s animated series Monsters at Work will also stream on Disney+. Disney is working on the new season of Star Wars: The Clone Wars and a live-action show based on Cassian Andor and K-2SO from Rogue One: A Star Wars Story. Disney is also planning to make original movies such as Lady and the Tramp exclusively for the Disney+ app.
Disney+ has also signed deals with Roku (ROKU) and Sony (SNE) to distribute Disney+ on streaming devices and console gaming systems. It will already be making the service available on connected TVs and mobile devices.