Disney: The Path Forward In The Linear To DTC Transition
Portfolio Pulse from The Science Of Hitting
Disney's (NYSE: DIS) transition from linear pay-TV to direct-to-consumer (DTC) faces challenges as U.S. pay-TV declines impact the company's revenues and operating profits. The company needs to convince consumers that their DTC bundle is worth more than the current price to offset the decline in linear TV revenues.
June 26, 2023 | 1:16 pm
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Disney's transition from linear pay-TV to DTC faces challenges as pay-TV declines impact revenues and operating profits, potentially affecting the company's stock price.
Disney's revenues and operating profits are being negatively impacted by the decline in U.S. pay-TV subscriptions. This decline puts pressure on the company to make their DTC transition successful and profitable. If they fail to convince consumers to pay more for their DTC bundle, it could lead to further revenue declines and negatively impact the stock price.
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IMPORTANCE 80
RELEVANCE 100