Walt Disney Co. (NYSE:DIS) is on a mission to enhance its streaming platforms—Disney+, Hulu, and ESPN+—to keep subscribers more engaged and reduce churn. In a recent Wall Street Journal report, Disney’s strategic focus on “hours per subscriber” aims to captivate audiences for longer periods.
CEO Bob Iger, during a May earnings call, lauded Netflix as the “gold standard” in streaming. Emphasizing the need to rival Netflix Inc. (NASDAQ:NFLX), Iger revealed Disney’s plans to introduce personalized algorithms for content recommendations, customized promotional art, and incentivizing emails for users to finish incomplete series. Additionally, Disney will roll out pop-up live channels, making content discovery seamless and engaging, within six months.
Despite reporting a 1% year-on-year revenue growth to $22.08 billion in Q2—slightly below the $22.11 billion analyst estimate—Disney’s adjusted EPS of $1.21 surpassed the consensus estimate of $1.09. Looking ahead, Disney targets a 25% growth in fiscal 2024 adjusted EPS. Comparatively, Netflix reported a 14.8% revenue growth to $9.37 billion in Q1, with an EPS of $5.28, both exceeding analyst expectations. Netflix added 9.33 million new subscribers in Q1, bringing the total to 269.60 million, while Disney serves nearly 230 million customers worldwide through its various streaming services.
Notably, Disney’s shares dipped by 1.39%, trading at $97.11, reflecting the market’s cautious optimism. Also catching attention are significant insider trades, including James P. Gorman’s acquisition of $2,120,628 worth of Disney stock, enhancing his stake by a whopping 4,283%.
What do you think of Disney’s new strategies? Will they succeed in rivaling Netflix? Share your thoughts in the comments below, and don’t forget to share this story!
Source: Quantisnow
