Disney Develops Tech to Rival Netflix and Boost Streaming Profits: Report
Portfolio Pulse from Anusuya Lahiri
Disney is developing new technology to enhance user engagement on its streaming platforms, aiming to rival Netflix. The company is introducing personalized algorithms, customized promotional art, and pop-up live channels. Disney reported a slight revenue miss but beat EPS estimates in Q2, while Netflix reported strong revenue and subscriber growth.

July 17, 2024 | 5:45 pm
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Disney is introducing new features to enhance user engagement on its streaming platforms, aiming to reduce subscriber churn and rival Netflix. Despite a slight revenue miss in Q2, Disney beat EPS estimates and expects significant EPS growth in fiscal 2024.
The introduction of new features to enhance user engagement is likely to positively impact Disney's streaming services, potentially reducing churn and increasing subscriber hours. The company's strong EPS performance and optimistic growth outlook further support a positive short-term impact on the stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Netflix is described as the 'gold standard' in streaming by Disney's CEO. Netflix reported strong Q1 revenue and subscriber growth, beating analyst estimates.
Netflix's strong performance in Q1, with significant revenue and subscriber growth, reinforces its position as a leader in the streaming industry. This positive performance is likely to support the stock in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50