At its annual investor day conference on Thursday April 11th Disney (DIS - Get Report) will unveil its Direct-to-Consumer video streaming service, Disney+.
The new streaming service combined with ESPN+ and Disney's controlling stake in Hulu will make it a major player in the video streaming industry, setting it up to compete with the likes of Netflix (NFLX - Get Report) and Amazon's (AMZN - Get Report) Prime Video.
There is still a lot we don't know about Disney's new Disney+ direct-to-consumer streaming service -- namely price, a specific launch date and what original content Disney will offer alongside its own TV and film library, but since Disney has one of the industries top intellectual property portfolios it has consumers and investors very excited.
In a recent note from analysts at Cowen, they stated in their base case that they believe that Disney+ reaches ~30 million global subscribers by FY21 year end. To put that in perspective Netflix has ~139 million global subscribers at the end of 2018.
Additionally, on Wednesday April 10th, Disney was upgraded to Outperform at BMO Capital with the Analysts stating that Disney has both downside protection as well as several upside catalysts including the push into streaming and the new Star Wars lands at the Disney Parks in Orlando and California .
As Zev Fima. Research Analyst at ActionAlertsPLUS.com, points out, "the one thing investors do need to keep in mind is that building out a streaming service isn't cheap, so while we do expect to hear about costs at some point these investments had to happen eventually and 2019 is the perfect year to do it. Disney can offset the added costs with its incredible slate of movies this year."
Disney movies set to release this year include: Avengers:Endgame, Spider-Man Far From Home, Toy Story 4, the live-action Lion King, Frozen 2, and Star Wars Episode IX. Most, if not all of these films are expected to bring in over a $1 billion dollars at the box-office, with some having a good chance at breaking box-office records.
Disney is up over 7% on the year and closed up 0.22% on Wednesday.