A Little Perspective On The Early Subscriber Numbers For Disney+
On day one, Disney+ registered 10 million subscribers.
“I believe the number could’ve been greater if the massive number of hits did not cause a glitch in the website,” Tigress Financial's Ivan Feinseth wrote in a report.
The Early Success Of Disney+
There’s little reason to doubt Feinseth’s instinct. In its first two weeks, the Disney+ app tallied 15.5 million downloads and $5 million worth of in-app purchases driven by hype around the Walt Disney Co (NYSE: DIS) content library and the launch of "The Mandalorian." By some estimates, it’s continued to accrue another 1 million new subscribers daily.
“The huge initial numbers continue to show that Disney+ will be a significant competitor to Netflix,” Feinseth wrote.
In its 11 years in business, Netflix, Inc. (NASDAQ: NFLX) has accrued 60 million paid U.S. subscribers and 97 million international subscribers.
“The strong initial results of Disney+ means it could easily exceed its initial 60-90 million subscribers forecast much earlier than its initial 2024 target,” Feinseth said.
Investors see great potential in the young streaming service. Since launching Disney+ on Nov. 12, Disney has risen 9.4% to an all-time high. Netflix appears undaunted. It has spiked more than 7% in the same time.
Why It's Important For Disney
Feinseth expects Disney to sustain its run and continues to recommend purchase, partly because the effects of Disney+ are not isolated. The Disney+ craze has boosted sales across the company portfolio. Hulu app downloads have risen 55% and ESPN+ 50%. To Feinseth, the across-the-board surge suggests more consumers are selecting Disney’s $13 bundle package instead of the $7 standalone Disney+ subscription.
“Most importantly, I believe the success of Disney+ will also drive merchandise sales, park visits, cruises, increasing other business through its massive halo effect,” Feinseth wrote. “I believe that Baby Yoda, along with other Mandalorian action figures will be in huge demand.”
Disney's stock traded around $151.64 at time of publication.
Related Links:
Disney+ Accounts Reportedly Hacked, Sold On The Dark Web
How Trader Sentiment On Streaming Stocks Has Changed Since Disney+ Launch
Photo courtesy of Disney.
Latest Ratings for DIS
Nov 2019 | Maintains | Buy | ||
Nov 2019 | Initiates Coverage On | Overweight | ||
Nov 2019 | Initiates Coverage On | Overweight |
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