Yahoo Finance Disney+ streaming bundle looks to the future
Dow component, Disney (DIS) reported a disappointing third quarter Tuesday, but it’s betting that its huge investment in a new streaming service – Disney+ – will pay off imminently.
“They really pointed out, with their new streaming service to look into their future,” Lizzie Dipp Metzger of Crown Wealth Management told Yahoo Finance’s “The First Trade.”
Metzger said despite some disappointing third-quarter numbers – partly stemming from its acquisition of 21st Century Fox and the dismal box-office performance of “Dark Phoenix” – the company is looking toward Disney+ for some revenue.
On the third-quarter earnings call, Iger gave new details on a streaming bundle the company is set to launch in November.
Disney’s OTT launches 600 hours of programming
Disney announced some detail about its new bundle offering, which will include all three of its platforms – Disney+, Hulu and ESPN+ – at an initial price of $12.99 a month.
“Disney+ will offer more than 600 hours of premium content from National Geographic at launch, along with almost 300 hours of family entertainment from the Fox Studios library,” Iger said on the call.
He added: “Disney+ will ultimately become the exclusive streaming service for our vast library of movies and series, National Geographic content, all upcoming Disney, Pixar, Marvel and Star Wars movies and a robust slate of high-quality original programming.”
The consolidation of three properties could be a winning OTT strategy for Disney, which is currently competing with streaming behemoth Netflix (NFLX) and Amazon Prime (AMZN).
The Disney+ library will include the first two “Star Wars” trilogies and the latest Marvel movies. And let’s not forget the box office hits from this year, including “Avengers: Endgame,” “Captain Marvel,” “Aladdin,” “The Lion King” and “Toy Story 4.” The company says all will be available on the streaming service in the first year of launch.
It “feels like it's all upside for Disney,” Noah Hamman, CEO of AdvisorShares, said. “That has always been a core holding for us; we’ll probably hold it for the next 20 or 40 or 60 years.”
Tracey Marx Bernstein is a senior producer for Yahoo Finance.
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