DIS - Disney: Disney+ Has Foundational Issues
2024-03-22 08:09:05 ET
Summary
- Disney+ subscriber growth has plateaued, indicating a potential problem with the content library and a lack of new releases.
- The higher churn rate and lack of original shows on Disney+ compared to Netflix contribute to the subscriber growth issues.
- Disney's financial success relies heavily on Disney+, but the current strategy may not be sustainable for long-term growth. Investors should be cautious.
Investment Thesis
While Disney's ( DIS ) flagship streaming service, Disney+, was originally launched as a competitor to Netflix ( NFLX ) in 2019 , the platform's growth has plateaued. While the platform had an initial period of strong growth, I predict their subscriber growth plateau is a bigger problem than it appears and it is a symptom of the style of content Disney chose to put on their platform....
Disney: Disney+ Has Foundational Issues