Disney ( NYSE:DIS )
Rich Greenfield, an analyst at Greenfield Research, said on Thursday that a new subscription tier for Disney’s ( NYSE:DIS ) streaming service funded by advertisements signifies a pivot for the firm, as the company’s goal is turning from aggressively acquiring subscribers to achieving profitability.
“This is Disney understanding they are very mature, meaning they’ve reached most of the people who are going to pay for Disney+ and now pushing hard on pricing,” the LightShed Partners co-founder told CNBC.
The remarks followed news that Disney+ had introduced a $7.99 ad-supported tier, $3 cheaper than the ad-free edition of the program.
Greenfield stated that the Disney+ service had lost $4B over the last year, prompting him to conclude that “they need to bring this to profitability.”
The LightShed co-founder noted that Disney+ consumers would likely pay a premium fee for the service because of the “sticky” nature of the family programming. He said that demand from marketers looking for fresh inventory on streaming platforms would also help the firm.
More generally speaking, Greenfield pondered how the recent leadership shift at the entertainment behemoth would affect its broader strategy with Bob Iger returning to the helm. The analyst claimed that Disney stock would benefit from a closer emphasis on its core sectors rather than seeking to broaden its ser...
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