June 18, 2019
Disney’s branded subscription streaming video service, Disney+, is launching on Nov. 12.
Wall Street investment bank UBS is the latest to jump on the self-serving bandwagon championing the pending Netflix rival.
The research firm said that 43% of respondents in an internal survey said they were interested in subscribing to the $6.99 Disney+ service. That tops UBS’ previous 20% to 30% market penetration prediction by 2030 for Disney+.
“Marketing for the service has yet to hit critical mass,” analyst John Hodulik wrote in a note.
Morgan Stanley projects the SVOD service could help Disney generate more than 130 million subscribers when combining Disney+ with ESPN+ and Hulu.
Analyst Ben Swinburne contends Disney+ will have upwards of 90 million subs within five years, including 13 million subs by the end of 2020.
“We believe the market has often overstated the risk and underappreciated the reward of the transition to streaming,” Swinburne wrote in a June 13 note. “Investing in Disney shares is a play on the durability of its IP.”