Disney+ Can Compete, But Can It Make Money?
The money-losing streaming app has carried Disney’s stock throughout the pandemic. Can it become the entertainment giant's financial backbone?
Star Wars series “The Mandalorian” has helped drive subscriber growth at Disney+. Next comes translating that into profits.
Source: DisneyShares of Walt Disney Co. closed at an all-time high Thursday, minutes before the company reported a 99% plunge in quarterly net income. That’s not something investors see often. It wasn’t that they were caught off-guard — a year into this global pandemic the business effects are hardly a surprise. But Disney’s stock price has continued to defy the crisis because shareholders of the theme-park, box-office and cable-network juggernaut now care predominantly about a single line item: how many people are watching Disney+.
At the end of 2019, Disney+ was a brand-new service with about 26 million subscribers. As of Jan. 2, its base has swelled to 95 million, quickly gaining ground on Netflix Inc.’s 204 million. Disney arrived late to the streaming party, but it’s certainly made an entrance.
