The Walt Disney Company (NYSE: DIS) has rested well in the locker of our hearts since our childhood. The company has delivered our all time favorites including Mickey Mouse, Donald Duck, Simba, Goofy and more. It changed the face of Marvel Universe after it acquired Marvel Studios in 2009 and 21st Century Fox in 2019. The company entered the streaming arena in 2019 with Disney+ their video streaming service, pushing Disney share price by over 9% the very next day.
Disney ‘+’ Point in Streaming Industry’s Current State
Recently, the company announced that they are introducing a new ad supported tier for the users. The news comes as after Netflix (NASDAQ: NFLX) released similar plans a month ago. Though the subscription will cost 3 more bucks than Netflix, it can still prove fruitful for the company. Netflix’s CEO, Ted Sarandos, says that “There could be more ad-supported services in the future”.
The entertainment sector is growing at a faster pace, so is the streaming industry. Roku, a digital media player manufacturer for video streaming, is on its mission to become a leading TV streaming platform. Currently, Netflix is the biggest paid streaming service with 209 Million subscribers globally. Disney+ currently holds 164.2 Million users on the platform.
DIS Stock Price Action
Disney shares have lost over 40% in its value since January 2022. It traded at yearly high to $160 during the year’s beginning and at yearly low to $90 the last month. The company saw an increasing number of sellers during Q2 2022 and Q3 2022 earning reports as indicated by the time cycles.
Parabolic SAR and the regression trend supports increased buying interest in the Disney share. This is potentially due to the new subscription scheme on Disney+. The company had weak quarterly earnings according to TradingView. They missed over a Billion then the estimated revenue. Analysts hold a maximum forecast of $145 in a year.
Currently, Netflix remains the most embraced ad-supported streaming platform around the world. HBO Max has the most expensive subscription without ads at present. People are increasingly leaning towards streaming services with 83% US citizens having at least 1 subscription. Experts think that this sector has the potential to become a $100 Billion industry.
The Walt Disney Company has an advantage with Marvel Studios. People are awaiting the launch of several movies and TV Shows including Secret Invasion, Agatha: Coven of Chaos, Antman and The Wasp: Quantumania, Avengers: Kang Dynasty, and Secret Wars, and more.
Disney+ has become the landing platform for Marvel movies and TV shows which can help the company in the long run. MCU is preparing for phase 4’s release which may attract more users on their video streaming platform. As Kevin Feige, President of Marvel Studios, prepares to bring new members from Marvel comics to life, the company may see a price explosion in Disney shares.
Source: https://www.thecoinrepublic.com/2022/12/12/disney-share-price-analysis-how-marvel-studios-and-streaming-sector-can-uplift-the-company-spirits/