Things are on track for Disney+ to eventually reach 160 million subscribers, at least that’s according to analysts at J.P. Morgan. The streaming service is expected to launch in late 2019, and Firm believes that over time, Disney+ could outdo Netflix, who currently has 139 million subscribers.

What’s happening:  

  • A recent article on CNBC notes that J.P. Morgan analyst, Alexia Quadrani, is projecting that Disney+ will one day reach 160 million subscribers worldwide.
  • For the record, while Disney has tested streaming in worldwide markets, they have made no formal announcement if or when Disney+ will be offered globally.
  • However, Quadrani expects Disney+ will ultimately reach 45 million subscribers in the U.S. saying J.P. Morgan is "confident that there is a substantial market for Disney+."
  • With Disney’s strong global presence and massive library of content, their new streaming service will likely be a strong competitor against rival platforms, according to J.P. Morgan.
  • CNBC notes that reaching global success with the streaming service could take years. They also point out that, “questions remain over when existing content rights will revert back to Disney in a handful of major geographies.”
  • Even though Disney already owns a massive library of content, they are already in the process of filming and developing new films and series for their platform.
  • Quadrani says the quality of these shows will be a big factor in determining how successful the service becomes.

What they’re saying:

  • J.P. Morgan Analyst, Alexia Quadrani: "While there is little question there are more direct-to-consumer services today than ultimately should survive, we have no doubt that Disney+ remains on the short list of products that should prevail longer-term. Our confidence in the resilient success of Disney+ comes from the company's unmatched brand recognition, extensive premium content, and unparalleled ecosystem to market the service."
  • Alexia Quadrani: "Disney has already shown some disposition to forego short-term revenues in order to develop the streaming business, by pulling content from Netflix once its contract expires at the end of the calendar 2018 film slate. While Disney management has not yet commented on a specific price, the company has stated that Disney+ will be 'substantially below' the price of Netflix."

ICYMI:

  • What is Disney+? We’ve got answers to some of the frequently asked questions about the new streaming service.
  • Disney recently hired Tehmina Jaffer as a senior vice president of business affairs for Disney’s direct-to-consumer and international segment. She will help to launch and run Disney+. Jaffer is a former Netflix executive who’s experience includes developing business strategies for shows such as Narcos and 13 Reasons Why.
  • Along with launching their own streaming service, Disney currently owns a 30% stake in Hulu, but that will change once the Fox deal is closed.
  • Disney launched the sports based streamer, ESPN+ in April of 2018.
  • During shareholder meetings and quarterly earnings calls, CEO Bob Iger has expressed his confidence in the the service, which now has 2 million subscribers.
 
 

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