In a presentation to investors Thursday, the world’s largest entertainment company outlined plans for dozens of new movies and TV shows from those major brands, with an eye toward becoming a streaming behemoth in four years. The company expects its program spending to reach $14 billion to $16 billion annually by then.
Disney+, the entertainment giant’s flagship streaming platform, also is getting a price hike. The U.S. monthly rate will climb $1 to $8 in a move that executives telegraphed earlier this year. In Europe, the price will rise 29% to 9 euros ($11) a month, although there it is getting additional content aimed at adults.
Shares of Disney rose as much as 11% to a record $171 in New York trading Friday. The stock has about doubled since March on the strength of the streaming business.
“The enormous success of Disney+ inspired us to be even more ambitious,” Executive Chairman Bob Iger said at the event. “Our pipeline is much more robust than we initially anticipated,” he said, adding that the Disney+ cadence should soon hit 100 new titles per year.
Disney+ ESPN and Hulu round out Disney’s streaming portfolio. The transmission medium is no longer dependent on cable TV and or satellite connection which affords streaming companies an opportunity to retain more of their earnings. So far, this saving has been passed on to consumers in the form of low subscription fees. However, the route to profitability lies in price rises despite the highly competitive environment.Click HERE to subscribe to Fuller Treacy Money Back to top