Global Economics

Disney+ Proves More Important than Ever to Disney Company

Disney+ might have come just in time for the Walt Disney Co. (DIS) this year. While the current coronavirus pandemic has swept the world and changed consumer habits tremendously when it comes to amusement and theme parks such as Disney World, Disney+ is certainly doing its part to help carry the beloved company.

Since the Disney+ release earlier this year, it has gained 54.5 million subscribers throughout the world With an average monthly cost of $6.99, Disney could potentially see over $4.5 billion in revenue from Disney+ alone within the first 12 months of its launch.

With more Americans and people worldwide currently staying home due to the coronavirus pandemic, Disney+ is becoming more of a content cornerstone for many viewers. Disney is also stepping up to the increased demand by releasing content quicker than usual. Frozen II was released three months earlier than initially anticipated, and other movies like the Broadway hit Hamilton have seen remarkable download numbers worldwide.

The success of Disney+ can definitely be seen as a help following the 90% earnings slide seen in May due to the temporary closings of theme parks and other coronavirus effects. Disney has also halted live-action film productions for the time being, and the impact on advertising and viewership with Disney-owned ESPN continues to be calculated and watched as various sports teams see an increase in COVID-19 infection rates. The Miami Marlins baseball team has already reported 20 positive cases as of two days ago.

As of Friday, Disney closed the market with an increase of 1.11% to $116.94 per share.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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