m a big fan of Walt Disney. Thats why I not only look at their films, but also their stocks. Walt Disney is not alone in the film market, and one of their competitors is Netflix. But for how long? Last Fall Disney said they wanted to pull its own films from Netflix.
Disney said they are planning to launch a competing streaming site service next year. It will be a family friendly streaming site and a site for adults. We know that Netflix is producing its own films, but we also know how Disney is doing it. It is a production powerhouse. In other words; a big competitor in the future.
(Tchaikovsky`s music from the ballet “The Nutcracker” is one of my favorites. This fantasy film directed by Lasse Hallstrom is scheduled to be released by Walt Disney Pictures on November 2, 2018)
s market cap is 150,46 billion, while Netflix market cap is 138,10 billion. A big difference, but unfair to compare, because Netflix is a streaming company while Disney is so much more than that.
Walt Disney Company is an entertainment company. The company operates in four business segments, which is Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.
The media networks segments includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.
There is no doubt that the real big Champion in the streaming market is Netflix, but they will get a serious competitor in the future. The Fox deal will make Disney even bigger on top of its already great pool of media properties. A majority stake in Hulu will also help.
Disney will take control of Fox`s movie studios, TV studios, FX Network and National Geographic Channel. All this will help Disney to build a new streaming giant.
Disney agreed to buy the bulk of Fox for $52 billion in December of 2017. Included in the package deal was a 30 percent stake in online streaming service, Hulu, of which Disney already owned 30 percent.
Now with a majority stake in the company, Disney has the option to buy out the rest of the Hulu stock from Comcast and Time Warner or engage with all the players involved. There is no doubt that they can be a great production powerhouse.
Disney are jumping right into it with Hulu. On top of that they can start to build their own streaming site for children in addition to ESPN Plus, which is a subscription service for sports fans, that will launch this spring for $4,99 per month.
“I think the way to look at the revenue opportunities, as particularly as it relates to production, is to consider the fact that what we`re buying here is significant production capabilities and, with that, the talent to produce on our behalf,” Iger said to investors earlier this year.
Walt Disney Company is expected to report earning on 8 May 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $1,68, and reported earning for the same quarter last year was $1,5. Any earnings surprise?