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Associated press
- According to estimates by Laura Martin, an badyst at Needham & Company, Disney is expected to launch its competitor Netflix – Disney Plus – in the fall. The media conglomerate could be about to "win the OTT contest".
- Following the launch of Disney Plus, the company will offer three distinct streaming offerings, including Hulu and Espn Plus, that it could then use for cross-promotion and re-grouping, said Martin in a note to customers Tuesday. .
- Needham has increased its revenue forecast for Disney in 2019 by 6% to $ 71.67 billion, an increase of 21% from the previous year.
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Laura Martin, an badyst at Needham, said that Disney's valuation has improved, with more and more investors trusting the company to "win the OTT contest".
Once Disney Plus launches in the fall, with major Star Wars and Marvel franchises, Disney will have three consumer streaming platforms, including Hulu and ESPN Plus. With the addition of new content from the acquisition of 21st Century Fox by Disney, Martin sees the company becoming a legitimate competitor of streaming.
"We think that together, DIS plus FOX can create a direct consumer streaming service powerful enough to compete effectively with Netflix." Martin said in a note to customers on Tuesday.
The company increased its 2019 revenue forecast for Disney by 6.6% to $ 71.67 billion. This would be an increase of 21% over the same period last year. In the third quarter of 2018, Disney generated sales of US $ 827 million through its direct sales offers to consumers. These sales are expected to increase to US $ 3.06 billion in the third quarter of 2019.
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Boosted by Fox's new Fox badets, Needham expects sales to reach $ 21.35 billion in the third quarter of 2019, an increase of 40% over last year. .
Disney Plus will also have a price advantage over Netflix. The service should cost $ 7 a month, compared to the cheapest Netflix plan, which costs $ 8.99 a month.
Disney's stock has increased 32% since the beginning of 2019.
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