Disney unloads a slew of impressive Disney+ announcements, announces price hike
Disney boosted estimates for Disney+ subscriber numbers, announced increased investment in original content and reiterated that it will be profitable in 2024.
✒ Content is king.
Disney+ has 87m streaming subscribers and expects 230m to 260m by 2024. If Hulu and ESPN+ are included, Disney has 137 streaming subscribers, quickly catching up with Netflix’s 195m.
Disney+ can afford to raise its price too. Even after the increase of $1 next March, the cost of $7.99 will still be lower than Netflix’s $13.99 and HBO Max’s $14.99.
Wall street seems to endorse the strategy to focus on content. The 14% surge in share price last week suggests that investors are comfortable valuing Disney like a tech company.