In Focus: Disney +
Thanks for checking out this week's In Focus, our look into a company, companies, or markets that made Wall Street's news cycle. This week we bring Disney in focus.
On Thursday evening Disney (DIS) provided long awaited details about it's streaming service Disney Plus, and I'll say that it impressed me. I've discussed Netflix (NFLX) and the streaming wars twice before, and I've been critical of Disney both times, expressing my belief that Disney wouldn't have the goods to make their service work. But I may have to back track on my original assessment.
Wall Street Loves Disney
The details provided by Disney sparked Wall Street on Friday and money poured into the stock sending the price shooting up. On the other side of the fence, Netflix's stock dropped like a rock on Friday.
But investor presentations and trailers are one thing, execution is another. Will the people sign up to view what Disney is offering? Disney has definitely made it easier for viewers to at least give the streaming service a chance with it's surprisingly low subscription fee. Disney Plus will cost subscribers a whopping $6.99 per month. But this is likely because adults who prefer content with a bit more edge will need to subscribe to Hulu.
Netflix is Dead Netflix (NFLX) isn't dead or dying, but this is the competition that Netflix has coasted through the digital era without. However, I'm not ready to jump off of the Netflix ship just yet.
The name of the game is quality content, and Netflix has quality content. While many analyst will point to the Disney properties that Netflix will lose, they forget 'Bird Box' was a hit movie. 'Stranger Things,' 'Black Mirror,' 'Orange is the New Black,' and 'The Ozarks' are all legit hit shows, 'House of Cards' had a good run as well, and lets not forget 'Roma,' which was nominated for an Oscar. Netflix has proven that they can deliver quality content.
Where is the Play
There really isn't a play this week. Netflix is a HOLD, If you purchased the stock the last two times we discussed Netflix you're up, congrats. As for Disney, it's also a HOLD. After Thursday's announcement, Disney's stock has moved too far too fast. There will be a time to load up on Disney and Netflix but now is not that time.
This is where I leave you with a HOLD on Disney and Netflix. Thanks again for checking out In Focus, may you're next investment be your best investment.