Disney Targets Netflix
Be Afraid, Netflix, be very afraid. After posting some impressive earnings results last night, Disney will set its sights on the subscription streaming world to try topple Netflix from the top spot.
Walt Disney has been on everyone’s lips this past month from its stock price hot-streak, to the Avengers movie and even its amusement parks. All of which contributed to a better than expected earnings announcement last night where the company reported an EPS of $1.61 on revenue of $14.92bn – beating analysts’ estimates to seal off a good first quarter.
Now, the next few quarters will be focused on the company’s transformation from a TV giant to a subscription-based streaming media powerhouse. Even though the company mentioned that restructuring costs could weigh on profits for several years, its stock price has continued to rise almost 15% since Disney+ was announced in April.
It’s main cash cow, the family oriented services, are set to launch in November and projected to reach profitability in 2024 – not bad! It’s recent purchase of 21st Century Fox, however, is another reason for Netflix to be quivering in its boots over the vast amount of content that Disney+ will offer.
This, in conjunction with its highly lucrative Disney theme parks, hotels, movie studios and media networks are just a few of the reasons why Disney is headed towards world domination in 2019. If it’s not in your watchlist yet, perhaps it should be.
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