Disney (DIS) is in the sweet spot to capitalize on the pent-up post-pandemic consumer wave of travel and spending. Disney rolled out its wildly successful array of streaming initiatives that catered to the stay-at-home economy during the pandemic. These streaming efforts have transformed Disney's business model, which will be further bolstered by its legacy businesses as the prospects of the world economy continue to improve and reopen. Taken together, Disney is set to benefit across the board with its streaming initiatives firing on all cylinders and theme parks coming back online. The company has been posting phenomenal streaming numbers that have negated the negative COVID-19 impact on its theme parks. This streaming-specific narrative will change as the theme park revenue comes back online and flows into the company's earnings. As a result, Disney presents a compelling buy for long-term investors as its legacy business segments get back on track in the latter part of 2021 in conjunction with its wildly successful streaming initiatives.
Durable Streaming Revenue and Theme Parks
Disney has forecasted that its Disney+ streaming platform will have up to 260 million subscribers by 2040. Even more, advertising revenue for the upcoming fall television season rose by "double-digits" from the levels of 2019 before the global pandemic, per Bob Chapek. As a result, about 40% of sales during the "upfront" sales period went to streaming or digital ads, Chapek said at Credit Suisse's virtual Communications Conference. Continue reading "Disney - Riding The Post Pandemic Consumer Wave"
