News update about Disney

News update about Disney.

Disney announced on April 11, 2019 that its direct-to-consumer video streaming platform, Disney Plus, will arrive in November 2019. Disney Plus is reported to offer about 7,000 episodes of TV series and 400-500 movies, from Marvel, Star Wars, Pixar, and Disney-specific properties, with an overall family-friendly theme. Disney Plus’ television show totals only amount to 16% of what Netflix offers. Netflix’ movie library is also eight times bigger than Disney Plus’ launch lineup. In terms of sheer numbers, Disney Plus also falls short of Hulu, Amazon Prime, CBS All Access, and HBO Go. Disney Plus is priced at $ 6.99 per month, it’s just over half of the cost for a standard Netflic subscription. In the past, the company was renting out its catalogue of media content to Netflix. Throught the deal with Netflix, struck in 2012, Disney got a secondary distribution channel. And an estimated $150 million per year from Netflix. There had been an increasing trend of so-called cable cord cutters. A Nielsen report in 2018 found 14 million U.S. households were living without cable TV, Which has been another Important part of the Disney revenue stream. Two years ago Disney announced It would sever its relationship with Netflic, and increase its stake in BAMTech, the streaming technology company behind major league baseball digital broadcasts. As of march 20, 2019, Disney officially completed its merger with 21st Century Fox—-the company behind everything frim the Alien movies to The Simpsons. Disney’s $71.3 billion purchase of the flim and TV assets held by 21st Century Fox along with 60% ownership of Hulu is one of the biggest ,edia mergers ever. Is also marks the first time a major movie studio has simply ceased to exist as an independent entity since the decay of MGM in the 1980s. taking the number of big movie studio in Hollywood from six down to five(Disney, Warner Bros, Sony, Universal, and Paramount). Apple’s streaming services is yet to be priced. Question 1: Please assume the role of an analyst covering Disney’s stock. Read the historical information about Disney from HBS case (The Entertainment King). Drawing on the HBS case and the above news update, please offer a rating recommendation of BUY, NEUTRAL, or SELL of Disney stock (pick only ONE of the three options) and back up your recommendation.

News update about Disney

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