Disney, the media conglomerate that owns everything from Avengers to Avatar, might very well double its earnings over the next five years, reports CNBC.
Disney Is Getting Even Bigger
According to investment brokerage firm Morgan Stanley, most of this extra money will come from the company’s Disney+ streaming service.
It is predicted that a share of Disney will go for close to $6.50 in 2020. By 2024, Morgan Stanley believes that number will reach close to $12.
An analyst from the firm, Benjamin Swinburne, revealed this information in a letter to its clients this Tuesday:
“For all the complexities of Disney’s business model transition and the stock’s investment case, the durability of its content underpins everything.”
Ever since Disney announced its streaming service, ready for launch in November of this year, its stock has gone up exponentially. This in combination with its big hit movies, Avengers: Endgame, which is now the highest-grossing film to ever release, and Spider-Man: Far From Home, have helped its numbers rise close to 30% in 2019. Its streaming service will expand upon those offerings, as well as offer content with no advertisements for just $6.99/month, which will definitely boost this as well.
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Of course, Disney+ is competing with other streaming giants Hulu and Netflix. However, since it’s one of the biggest companies in the world and will have exclusive content that fans will flock to see, it will probably perform fine.
According to the publication, Disney is hoping to bring in 60 million to 90 million subscribers by 2024. While that sounds ridiculous, it’s actually quite plausible, especially with that price. Swinburne, an expert in the matter, claims that it’s realistic since “Marvel has broken beyond fanboy demand to mass market.”
This doesn’t mean that Disney is stopping in the theaters. Rather, they’re using this streaming network to fill in the void “between theatrical releases,” Swinburne reports.