BURBANK, CA – Disney continues to compound investments in support of the Disney+ launch, as it surpassed Wall Street projections this 4Q2019. This performance resulted in a sharp spike in Disney’s share value in pre-market trading.
However, shares are actually down 27.7% from their value last year, but still 12 cents above the Wall Street Forecast of 95 cents per share.
Group revenues, according to Disney, rose by 34% and now amount to $19.01 billion; a small amount less than the forecasted $19.04 billion.
The Disney+ launch is slated to proceed as planned on November 12th. The flagship streaming service is set to take on the biggest names in streaming: Netflix, Amazon, AT&T and Comcast. With the entire content library of Disney for $6.99 per month, Disney is confident that the service can stand toe-to-toe with the incumbent streaming giants.
The campaign to get Disney+ to the size it needs to take on its rivals from day one banks on the relationship that Disney has with its dedicated consumer base, according to CEO Bob Iger. With their current asset growths, it would seem that they would meet their aim to launch with as much traction as they can get and accelerate growth at a competitive rate.
Aside from the enthusiastic consumers, Iger is also thankful for its partners, who contribute much in marketing the service to consumers through the use of free trials and other promotional offerings. This, in conjunction with their strategic acquisitions, have all been arranged to craft Disney+ into an experience that is unique amongst all the other players in the market.
Analyst Douglas Mitchelson attributes Disney’s continued success to how well it can stabilize the cord cutting aspect of Disney+, as well as good ratings on both its television and film content. The success of Disneyland parks are a factor as well.