As far as technology stocks go, Walt Disney Company (NYSE:DIS) is an unlikely candidate to be top of mind for most investors when thinking about innovators in the tech space. Many will consider the company’s theme parks, movie business, or its various franchises and "owned and created" content first, ignoring the move the company has made into the streaming world, with Disney+.
I had predicted before Disney+ was launched that an immediate surge of interest was likely, though the raw numbers provided by Disney post-launch blew most bullish analysts out of the water, myself included. Disney announced it had captured nearly 300 million subscribers for its streaming platform at the time of writing, with the expectation that most of its base will continue to stay on long-term, due in part to the pricing strategy employed by Disney, undercutting the competition.
I think Disney’s move into the streaming space makes a ton of sense, for many reasons; among these is the belief that Disney’s offering is a "stickier" one than those of the competition- viewers of Disney content are much more likely to re-watch a film or series or trilogy 100 times (we’re talking about classics here, the type of content you would buy rather than rent at Blockbuster back in the day).
This simple fact alone means Disney will not be required to spend ungodly amounts of money on content like its rivals, allowing Disney to make massive profits from yet another sector, raising the bar for all players in this space.
Disney continues to be perhaps the most well-run fully integrated media and entertainment company out there today, and investors ought to take notice.
Invest wisely, my friends.
