Why the Disney Plus Launch was a Jaw-Dropping Success

  • Disney’s stock surged to record highs following the launch of Disney+.
  • Verizon likely played an important role in the successful launch of the streaming service.
  • Disney+ already boasts 10 million subscribers.

Disney’s (NYSE:DIS) stock value spiked on Wednesday following its 10 million Disney+ subscriber announcement. The news sparked interest in the company’s stock, causing it to go up within hours. The stock was trading at $137.39 at noon on Wednesday, and just five hours later, its valuation had jumped to $148.72.

Analysts have attributed the surge in subscription numbers to the company’s sprawling reach and media portfolio, which has grown exponentially after the Disney-Fox Entertainment Merger. The unprecedented subscription numbers surpassed year-end expectations.

The service was forecast to gain around 8 million subscribers by the end of the year, but this record was broken in a matter of days. Disney attributes the achievement to overwhelming demand for its products.

The Verizon Factor

Verizon has bundled a one-year free Disney+ subscription package for its Unlimited customers. The move is believed to have boosted subscription figures immensely as Verizon has approximately 100 million subscribers.

About 50 million Verizon users are eligible for the Disney+ offer, which will be free during the first year and then $6.99 in subsequent months.

Can Disney Sustain These Numbers?

Competition among leading video-streaming companies is likely to saturate the market and eat into profits in the long-term. The most dominant company in the space right now is Netflix, with just over 135 million subscribers. It, however, charges $12.99 a month, almost double what Disney asks for.

For less than $7, Disney+ is set to offer over 600 shows and movies. Some anticipated exclusives include Big Shot, Diary of a Female President, Noelle, Stargirl and The Mandalorian.

To sustain growth, Disney is likely to leverage an array of secret weapons. It already owns…

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