Disney stock soars as Disney+ reaches 10 million sign ups on day 1

Reports confirm that Walt Disney Co shares climbed to a record high after the entertainment company revealed that its new streaming service, Disney+, had witnessed extraordinary consumer demand, touching 10 million sign-ups on its very first day.

The robust performance of Disney, which has apparently added $18 billion to its market capitalization, could now peg Disney against other leading players in the streaming competition, which includes some prominent industry leaders such as Prime from Amazon.com, Apple TV, Netflix, and AT&T Inc’s upcoming HBO Max service.

Supposedly, with other streaming business of Disney, Hulu, which has around 26.8 million subscribers and ESPN+, which serves around 3.5 million subscribers - the company now serves approximately 40.3 million viewers in the United States as compared to around 60 million for Netflix.

Sources close to the matter informed that Disney+, introduced in the Canada, United States and the Netherlands recently, was struck with technical glitches which were triggered by higher-than-expected demand.

Reportedly, the service fees will be $7 per month and features nearly 7,500 TV episodes and 500 movies from the family entertainment catalog of company and also some new programming. A bundled offer including Hulu and ESPN+ costs $13. In April, the company mentioned that it aims to reach around 60 million to 90 million Disney+ subscribers worldwide by 2024.

Sources informed that in October, telecom provider Verizon Communications and Disney had unveiled a promotion for all existing and new Verizon unlimited wireless customers, and also new Fios and 5G home internet customers that are entitled for a free, one-year subscription to Disney+. Before launch, Disney executives stated that the company projected between 17 million to 19 million new subscribers owing to Verizon promotion.

Currently, Disney stated that it had no future plans as such to release Disney+ subscriber data outside of quarterly earnings calls of company.

 

Source Credit: https://in.reuters.com/article/us-walt-disney-streaming/disney-streaming-exceeds-expectations-with-10-million-sign-ups-shares-surge-idINKBN1XN2AK