Disney Announces Disney+ at $6.99 per Month [DIS]

Disney will launch its streaming video platform & Netflix competitor, Disney+, in November at $6.99/month. We're excited about its prospects.

Disney is up +10% on Friday morning after it announced it will launch its streaming video platform & Netflix competitor, Disney+, in November at $6.99/month.
We tuned into the Investor Day to give you some quick insights.
Disney+ is a Netflix competitor, and it will launch in November at $6.99 per month, which is sharply lower than Netflix's $8-14 average despite a very strong content library including Star Wars and Marvel Studios
We were positively surprised by Disney+'s low price as well as its strong subscriber targets (60-90M by end of 2024)
We think Disney will give Netflix a run for its money given the lower price, broader content which lowers customer acquisition costs, bundle potential with ESPN+, Hulu to lower churn, and company's balance sheet and cash flows
That said, we're still positive on Netflix and think DIS/NFLX can coexist profitably
Bottom line: We are very excited about Disney+ and its prospects for the stock. The shift to a more recurring-revenue business model bodes well for Disney long term.
What will Disney+ look like?
The interface looks a lot like the interface for Apple TV or Netflix (think of a grid of brands and content).
The Disney+ homepage is obviously for navigation, but it's about showing consumers everything it owns, and reminding them that Disney is the only place to get it all.
This is a core part of our investment thesis that Disney will leverage its video library to drive sales of its toys, theme park tickets, and more.
When content will Disney+ include?
All the hits. Here's a sample:
Adult: Star Wars, Marvel, Bohemian Rhapsody
Kids: Toy Story, Frozen, Finding Nemo
Classics: The Sound of Music, Titanic, Lion King, The Simpsons
When will Disney+ launch?
November 12, 2019. Don't get too anxious though; we think the stock could reflect the growth and value creation that Disney+ will bring much earlier than Q4, as we explain below.
How much will Disney+ cost?
$6.99 per month. That's about half of what Netflix charges for its standard HD plan.
We're very optimistic about the value provided to consumers at the $6.99 price point. Recent survey data from Morgan Stanley indicated healthy levels of interest for Disney+ at an $8/month price point.
What will I get in my Disney+ subscription?
You can subscribe to Disney+ itself, or buy a bundle of all the Disney streaming services - Disney+, ESPN, and Hulu - at a discounted price. It's kind of like cable TV, but smaller and on multiple platforms and all under Disney's corporate umbrella.
But even better than cable, Disney+ will be ad-free -- no commercials. And all of its content will be available to download and view offline That's a feature Netflix only added in the last couple of years (and it still doesn't apply to everything on its service).
Disney+ will be a content powerhouse, with all the bells and whistles that Netflix provides, at almost half the price.
What's next for Disney's stock?
We think the Disney+ service is well positioned to have an extremely strong launch that surpasses consensus subscriber expectations.
The Investor Day unveiling of Disney+ should shift the investor focus to the upcoming positive catalyst path.
As Disney becomes a more recurring, subscription-driven business - starting with Disney+ later this year - its valuation should grow from a consumer-esque one today (~16x P/E) to a higher, more Netflix-like valuation in years to come.
Apr. 12th, 2019
As of this writing, DIS was a portfolio holding of Titan Invest. This security may cease to be a portfolio holding at some point in the future.
The statements, opinions and analyses presented herein generally are provided as general information. Opinions, estimates and probabilities expressed in Titan research constitute the judgment of the author as of the date indicated and are subject to change without notice. While all the information prepared in the foregoing articles is believed to be accurate, Titan Invest (“Titan”) makes no express guarantee as to the completeness or accuracy of, nor can it accept any responsibility for errors appearing in, the foregoing articles. Other events which were not taken into account may occur, and any projections, outlooks or assumptions should not be construed to be indicative of the actual events which will occur. The information contained herein is not, and should not be construed as, an offer to sell or the solicitation of an offer to buy any securities. In addition, nothing contained herein is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. While Titan is a federally registered investment adviser, the information presented is not part of the personalized, proprietary algorithmic based investment advice provided by Titan to its advisory clients. Rather, the information presented constitutes educational and informational materials meant to better inform market participants, including, without limitation, current and potential advisory clients of Titan. Prior to making any investment decision, you are advised to consult with your broker, investment adviser, or other appropriate tax or financial professional to determine the suitability of any investment. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy discussed herein will be profitable or equal any historical performance level(s). Neither Titan, any of its affiliates, nor each of their respective officers, directors, members, agents, representatives, employees, or contractors (collectively, “Titan Parties”), shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided herein. You assume all risks of loss resulting, directly or indirectly, from the use of the information contained in the foregoing articles. By accepting receipt of the foregoing articles you acknowledge and agree to hold harmless the Titan Parties from any and all claims, actions, damages, losses, liabilities, costs and expenses of any kind whatsoever, including but not limited to any claims of negligence, arising out of, resulting from, by reason of, or in connection with the use of the information contained in the foregoing articles. Securities laws impose liabilities under certain circumstances on persons who act in good faith, and therefore no portion of the above shall constitute a waiver or limitation of any rights you may have under any federal or state securities laws.
Certain articles discuss historical performance of a particular issuer over a limited period of time. The historical performance discussed in such articles represents gross performance of the issuer over the limited period of time depicted, and is not indicative of any actual portfolio or investment returns of any account. Any such returns, even if an account was invested in the security discussed over the limited period of time depicted, would be reduced by fees and expenses paid by any such account. The foregoing articles contains certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success or lack of success of particular investments (and may include such words as “crash” or “collapse”). All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results. Comparable companies, strategies, portfolios and indices may be included in the foregoing articles only as a context reflecting general market results during the depicted period or as of the specified date. The comparison of any company, strategy, portfolio or index to a single other company, strategy, portfolio or index may be inappropriate because the relevant assets, strategies and level of risk may vary materially from the comparable company, strategy, portfolio or index as a whole. Titan uses a proprietary algorithmic strategy in selecting recommendations to advisory clients. Issuers and/or securities discussed herein may be, and often are, held by clients of Titan in their investment portfolios. Any single security or issuer identified in herein will not represent all of the securities purchased, sold or recommended for advisory clients of Titan. Please see Titan’s website and Program Brochure for more details on security selection for advisory clients. Before investing, consider your investment objectives as certain investments are not suitable for all investors. Past performance is no guarantee of future results.
© Copyright 2018 Whisker Technologies, Inc. All rights reserved.