Disney Admits It Needs Netflix's Tech Capability To Make Its Streaming Wishes Come True
Portfolio Pulse from Upwallstreet
Disney CEO Bob Iger acknowledged Netflix's superior technology in streaming, despite Disney+'s subscriber growth. Disney aims for streaming profitability by September, emphasizing the importance of Disney+, Hulu, and ESPN+. The company is finalizing its Hulu stake buyout from NBCUniversal and has consolidated U.S. sports rights with Fox Corporation and Warner Bros Discovery. Iger highlighted the need for Disney to adopt Netflix's technology to reduce costs and improve margins. Disney's diverse business includes parks, movies, TV, streaming, and a new venture into gaming with a $1.5 billion investment in Epic Games.
March 12, 2024 | 2:22 pm
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Disney acknowledges Netflix's superior streaming technology and aims for streaming profitability by September, focusing on Disney+, Hulu, and ESPN+. The company is also venturing into gaming with a $1.5 billion investment in Epic Games.
Disney's acknowledgment of the need for technological improvement and strategic investments in Hulu and gaming indicate a proactive approach to growth and diversification, likely positively impacting investor sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Disney has made an agreement with Fox Corporation and Warner Bros Discovery to consolidate U.S. sports rights, controlling about 85% of the market.
The strategic consolidation of U.S. sports rights with Fox Corporation and Warner Bros Discovery could enhance Fox Corporation's market position in sports broadcasting, potentially leading to positive short-term stock impacts.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Disney CEO Bob Iger admitted that Netflix has superior technology in streaming, highlighting the need for Disney to improve to reduce costs and increase margins.
The acknowledgment by Disney's CEO of Netflix's superior technology could reinforce Netflix's position as a leader in streaming technology, potentially boosting investor confidence in Netflix's competitive advantage.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Warner Bros Discovery has joined Disney and Fox Corporation in a deal to consolidate U.S. sports rights, aiming to control a significant portion of the market.
By partnering with Disney and Fox Corporation to consolidate U.S. sports rights, Warner Bros Discovery could see a positive impact on its stock due to the potential for increased market dominance and revenue from sports broadcasting.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70