DIS stock hit an all-time high on Wednesday after Disney (NYSE:DIS) launched its new streaming service, Disney+, which has already surpassed 10 million signups.
Disney took the streaming world by storm 12 months ago when it announced its new streaming service as a genuine contender to Netflix’s (NASDAQ:NFLX) title as the king of the streaming stocks. Its subscription fee of $7.00 is almost half that of Netflix, and with over 7,000 episodes and 500 films, Disney+ blows most of its competitors out of the water. Featuring classic Disney films and TV shows, a range of Natural Geographic documentaries, and every episode of The Simpsons, it’s no surprise to see the service drive up DIS stock on launch.
While the service offered by Disney is clearly attracting customers, the initial sign up figure of 10 million may have been padded out by presales, a 7-day free trial, and the fact that Verizon (NYSE:VZ) is offering its customers a year of free Disney+. However, the service has only been rolled out in the US, Canada, and The Netherlands, and with further international launches coming before the end of the year, there is clearly more room for growth in DIS stock.
Analysts are very bullish on the potential of Disney+ to capture the streaming space, as it has a ‘Strong Buy’ consensus. DIS stock is currently valued at $147.15, and it’s hard to see that going anywhere but upwards with the huge potential of this service. The company has already signed up more than 10% of the high end of its forecast of 60 million to 90 million subscribers by the end of 2024.
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Disney+ joins a growing list of media giants trying to get into the streaming industry. Apple TV Plus also launched this month, and while it has a much smaller catalog, it boasts all-original content featuring A-listers such as Jennifer Aniston, Steve Carell, Oprah, Jason Mamoa, and Steven Spielberg. With the streaming market becoming increasingly condensed, it looks as though Disney might just have the edge.
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