Analysts at UBS found that interest in Disney+, the iconic media company’s [DIS] upcoming subscription streaming service, is even higher than the company expected.
The investment bank surveyed 2,000 customers in the U.S. aged 18 and above between April and May and found that 43% were interested in Disney+ before the November 12 rollout.
“This compares to Disney guidance for 20-30M US subscribers by 2024, or ~20-30% penetration of US broadband households,” the analysts note. “We view this as a strong result considering Disney+ will not launch until November and marketing for the service has yet to hit critical mass.”
Disney’s plan is to remove much of its current content from other streaming services like Netflix and made available exclusively on Disney+.
“Interest was highest for younger demos as well as higher income households,” the UBS analysts added. “We continue to see Disney+ as well-positioned in the increasingly crowded streaming video market due to the strength of the Disney brand and content assets.”
Disney+ will be ‘like an impulse purchase’
“Disney+ has done it right in terms of the roll-out,” Yahoo Finance’s Dan Roberts, who closely covers Disney, said on the live show YFi AM. “Its coming in November, and the price will significantly—severely, I think—undercut Netflix.”
The service will cost $6.99 per month — or about half the price of a standard Netflix subscription.
“Not only are you saying: ‘We are launching, and we’ll have all this stuff and Netflix no longer will,’” Roberts added, “but you’re saying: ‘It’s only $6.99.’ It’s like an impulse purchase.”
Walt Disney Company (The) (DIS - Get Rating) shares were trading at $139.20 per share on Wednesday morning, down $0.04 (-0.03%). Year-to-date, Walt Disney Company (The) (DIS - Get Rating) has gained 26.95%, versus a 17.44% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Yahoo! Finance .
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