With superheroes and sci-fi, Disney+ outlook bright

Platform News: Video streaming services and VOD

Slow subscriber growth at Walt Disney Co’s streaming service in the last quarter was a speed bump as a slate of Marvel superhero films and sci-fi thrillers from the Hollywood powerhouse will attract new fans, analysts said.

The positive comments come a day after Disney+, the streaming service the company launched in late 2019, failed to reach as many subscribers by early April as Wall Street had estimated.

Netflix, AT&T’s HBO Max and Disney+ have added millions of new subscribers during the pandemic as people stayed indoors.

However, growth is expected to slow as production delays hurt film and TV shows, with the meteoric rise in subscriber numbers last year making comparisons difficult in 2021.

But analysts were largely optimistic over Disney’s position in the market. Disney+ launched 12 years after Netflix started a streaming video service, and has already reached about half of Netflix’s size in less than 18 months.

A steady stream of the hottest franchises is seen sustaining the lead for Disney+ among traditional media companies for years to come.

“The benefit where Disney+ is concerned is its content already exists, and doesn’t age in the same way many of today’s films do,” said Sophie Lund-Yates, analyst at Hargreaves Lansdown. “In the world of streaming, that is a godsend.”

Related Article:
US senators urge probe of TikTok on children's privacy

Boba Fett eating a Porg

Upcoming Disney+ shows include Marvel’s “Loki”, Star Wars series “The Book of Boba Fett”, “Andor”, which is based on popular characters from the fabulous Rogue One – A Star Wars Story movie, a series based around Obi Wan Kenobi, and the movie “Black Widow” starring long-time Marvel favourite, Scarlett Johansson.

The company is also investing heavily to make inroads in international markets, with plans to launch Disney+ in Malaysia and Thailand next month.

Disney said it was on track to meet its target for 230 million to 260 million Disney+ subscribers by the end of fiscal 2024.

The company’s shares fell 3% on Friday, but for now, analysts are upbeat on Disney.

“We’d call the current slowdown but a speed bump given the assets Disney will bring to bear on streaming,” Wells Fargo said in a note.

“The content pipeline is when, not if.”

The team at Platform Executive hope you have enjoyed the ‘With superheroes and sci-fi, Disney+ outlook bright‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Aniruddha Ghosh, Eva Mathews and Subrat Patnaik in Bengaluru. Editing by Sayantani Ghosh and Shounak Dasgupta.

Related Article:
Australian government plans law forcing Google and Facebook to share ad revenue with local media outlets

You can stay on top of all the latest developments across the platform economy, find solutions to your key challenges and gain access to our problem-solving toolkit and proprietary databases by becoming a member of our growing community. For a limited time, our subscription plans start from just $16 per month. What are you waiting for?

Share this Article