On Tuesday, a surprise announcement was made by Disney (DIS) that it intends to release its new live-action Mulan movie on the Disney+ platform for the price of $29.99. The release is currently set for September 4th, much to the excitement of Disney fans everywhere. This premium movie pricing also reflects the first time that Disney will actively charge for viewership on Disney+ outside of the $6.99 per month user fees.
It seems that many investors were also excited about this new release. On Wednesday, stocks were up by 10% in the morning and ended at market close up another $10 from the previous day to $127.61 per share. At the time of this article’s writing, Disney stocks were continuing their upward trend with an increase of another 2.52% to $130.82 per share.
This news comes on the heels of a poor Q3 earnings report for Disney. On Tuesday, Disney released its earnings report for the third quarter, which showed a definite impact on the company from the coronavirus pandemic currently going on in the U.S. and throughout the world. Disney park’s revenue was reported as down a remarkable 85% from 2019. There was also a revenue shortage between the projected $12.37 billion expected and the $11.78 billion actually earned. A Q3 revenue loss of $4.72 billion due mostly to a recent 21st Century Fox acquisition was also reported.
Disney park revenues have unsurprisingly struggled this year, live-action film productions have been halted for now, and advertising and sports viewership for ESPN has seen an impact from COVID-19. However, Disney+ is set to potentially bring in $4.5 billion for the company on its own over the next 12 months.
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