Walt Disney (district) – Shares of Get the Walt Disney Company reported Thursday after the media and entertainment conglomerate smashed Street’s earnings forecasts, revealed new pricing structures for its direct-to-consumer platforms and overtook Netflix (NFLX) – Netflix Inc. as the world’s largest streaming service. get report.
However, the group lowered its forecast for near-term subscriber growth, noting that the decision to pull out of a bidding war over Indian cricket rights would likely bring silence to its Disney+ Hotstar division. Still, as of September 2024, the company sees between 135 million and 165 million core Disney+ subscribers, with the total number ranging between 215 million and 245 million.
In the three months to June, Disney added an impressive 14.4 million new Disney+ subscribers — compared to Netflix’s loss of 970,000 — bringing its entire “family,” including EPSN and Hulu, to 221.1 million.
Disney also unveiled price increases for both of its main streaming platforms, which will jump from $3 to $10.99 per user, and has priced the new ad-supported platform, which launches December 8, at $7.99 per user . Is.
Earlier this month, Disney raised the price of its sports-streaming service ESPN+ from $3 to $9.99 per user and on Wednesday announced it would also raise prices for its entertainment platform Hulu.
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CEO Bob Chapek told investors in a conference call late Wednesday, “We continue to believe that investments have grown very well relative to value over the past two and a half years, but we have a lot of leeway to evaluate value.” we don’t think this will have a significant impact on our churn in the long term.”
Shares of Walt Disney are up 7.4% in premarket trading on Thursday, resulting in opening prices of $120.78 each.
Disney’s third-quarter earnings rose 36.2% year over year to $1.09 per share, while revenue rose 26% to $21.5 billion.
Parks & Experiences revenue topped Street’s estimates at $7.4 billion, up more than 70% year over year as visitors flocked to reopen resorts and cruises around the world, particularly in Hong Kong and the United States. returned for
Brandon, analyst at KeyBanc Capital Markets said, “We continue to view Disney as the only asset we can afford to blend content and experiences with direct-to-consumer products, relatively strong linear brands and parks. want to see.” Following last night’s conference call, Nispel raised his price target on Disney stock to $154 per share from $23.
“This should translate into revenue and operating income growth over the next several years, which is the fastest we’ve reported,” he said.