POSTED ON April 1, 2021 BY Noah Kiedrowski
As the economy is on the fast track to reopening with a robust vaccine rollout, Disney (DIS) is set to benefit across the board. Disney’s Parks are set to reopen in stages starting in April, with its Disneyland and California Adventure theme parks slated for April 30th. The theme parks reopening will be a major catalyst for Disney as the company annualizes the COIVD-19 pandemic that shuttered all its properties worldwide. The company has been posting phenomenal streaming numbers that have negated the COVID-19 impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company’s earnings. Disney is a compelling reopening play now that the stock is double digits off its highs. Disney is a buy for long-term investors as its legacy business segments get back on track in the latter part of 2021 in conjunction with its wildly successful streaming initiatives.
Theme Parks and Streaming SynergiesDisney (DIS) expects its Disney+ streaming platform will have up to 260 million subscribers by 2040. The company continues to exceed all expectations in the streaming space accelerated by the stay-at-home COVID-19 environment. Despite the COVID-19 headwinds, Disney’s streaming initiatives have been major growth catalysts for the company. Disney+’ growth in its subscriber base has shifted the conversation from COVID-19 impact on its theme parks to a durable and sustainable recurring revenue model. This streaming bright spot in conjunction with optimism of its park and resorts coming back online has been a perfect combination as of late, especially with the vaccine rollout picking up steam. Disney+ has racked up 94.9 million paid subscribers, Hulu has 39.4 million paid subscribers, and ESPN+ has 12.1 million paid subscribers. Collectively, Disney now has over 146 million paid streaming subscribers across its platforms. Disney+ has been wildly successful via unleashing all of its Marvel, Star Wars, Disney, and Pixar libraries in what has become a formidable competitor in the ever-expanding streaming wars domestically and internationally. Hence the tug-of-war on Wall Street between COVID-19 impacts against the success of its streaming initiatives, with the latter winning out.
As the economy is on the fast track to reopening with a robust vaccine rollout, Disney (DIS) is set to benefit across the board. Disney’s Parks are set to reopen in stages starting in April, with its Disneyland and California Adventure theme parks slated for April 30th. The theme parks reopening will be a major catalyst for Disney as the company annualizes the COIVD-19 pandemic that shuttered all its properties worldwide. The company has been posting phenomenal streaming numbers that have negated the COVID-19 impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company’s earnings. Disney is a compelling reopening play now that the stock is double digits off its highs. Disney is a buy for long-term investors as its legacy business segments get back on track in the latter part of 2021 in conjunction with its wildly successful streaming initiatives.
Theme Parks and Streaming SynergiesDisney (DIS) expects its Disney+ streaming platform will have up to 260 million subscribers by 2040. The company continues to exceed all expectations in the streaming space accelerated by the stay-at-home COVID-19 environment. Despite the COVID-19 headwinds, Disney’s streaming initiatives have been major growth catalysts for the company. Disney+’ growth in its subscriber base has shifted the conversation from COVID-19 impact on its theme parks to a durable and sustainable recurring revenue model. This streaming bright spot in conjunction with optimism of its park and resorts coming back online has been a perfect combination as of late, especially with the vaccine rollout picking up steam. Disney+ has racked up 94.9 million paid subscribers, Hulu has 39.4 million paid subscribers, and ESPN+ has 12.1 million paid subscribers. Collectively, Disney now has over 146 million paid streaming subscribers across its platforms. Disney+ has been wildly successful via unleashing all of its Marvel, Star Wars, Disney, and Pixar libraries in what has become a formidable competitor in the ever-expanding streaming wars domestically and internationally. Hence the tug-of-war on Wall Street between COVID-19 impacts against the success of its streaming initiatives, with the latter winning out.