The Walt Disney Co. (DIS) media firm launched the Disney+ streaming service last year which rapidly attracted tens of millions of subscribers. But that rapid growth has been putting the big question mark that whether the media firm be able to sustain this pace of growth and completely compete with other subscription services.
User base of Disney+ hit almost 74 million in its first year of service. Most of the success is attributed to partnership with Verizon, which in the first quarter of the launch of Disney+ accounted for around 20 percent of subscriptions. Verizon continues to provide free access to Disney+, but it is now a three-way plan that includes Hulu and ESPN+ as well.
Content demand is the key factor for the rise of subscribers to streaming services. The position of Disney+ is much worse in this region than that of its competitors. The firm has a popular “Mandalorian” TV series, but the number of popular projects in general is limited. So, five new projects were launched by Disney in October, while rival Netflix released 67 new projects.
Old franchises like Star Wars or Marvel films are Disney’s main base. It’s incredible for keeping existing franchise followers, but not enough for new subscribers to be drawn.
Disney+ has shown that it is able to produce vivid, high-quality shows during the first year of operation. For families with small children, though the channel is still positioned its self as a better service provider. But this will restrict the growth of the organization in the long run. Disney is therefore in dire need of diverse content that will allow it to compete better and attract subscribers with distinct interests. It could become the second-largest streaming service if the company is willing to spend billions of dollars in such content, as Netflix does.
The Walt Disney Co. (DIS) stock was worth $153.61 on Wednesday, while it has added 6.21% to its value since start of the year.