Disney Announces New Programming For Its Streaming Service - InvestingChannel

Disney Announces New Programming For Its Streaming Service

Walt Disney Co. (NYSE:DIS) has announced dozens of new shows for its Disney+ streaming service in an effort to continue growing subscriptions that now top 85 million.

Disney Chief Executive Officer Bob Chapek announced the new subscriber tally during a presentation to investors, an event that showcased Disney’s streaming ambitions and its attempts to cope with the effects of the pandemic. Disney+ closed the last quarter with almost 74 million paying subscribers.

Disney, like other Hollywood studios, is reorienting its film and TV business towards home entertainment and has leapfrogged many competitors with its fast subscriber growth. It has signed an agreement for cable provider Comcast Corp. (NASDAQ:CMCSA) to offer the Disney+ streaming services on its platform as well.

Shares of Disney rose as much as 8% in extended trading Thursday following the announcements. If that holds in trading Friday, it would mark an all-time high for the stock, which has nearly doubled since March on the strength of the company’s streaming business.

Disney has outlined aggressive plans to stock the Disney+ streaming service with new programming to keep the subscriber pipeline growing over the next few years. Future plans include 10 series from the Marvel division, 10 Star Wars TV series, and another 15 programs from Disney live action, Disney animation and Pixar animation.

The programming slate also includes feature-length films such as the animated picture “Raya and the Last Dragon” that will debut for purchase on Disney+ at the same time as in theaters. However, the company’s biggest films will continue to debut exclusively in theaters at first.

Disney also announced that ESPN and ABC will become the home for the Southeastern Conference’s top football and basketball games under a 10-year deal starting in 2024, featuring college teams such as Alabama and Auburn. The company will pay in the low $300 million U.S. range each year on top of previous commitments, or more than six times what CBS currently pays to broadcast the games.

Disney executives also said they will launch the Star service in Europe in February and in Latin America in June. In Europe, it will be integrated with Disney+ and include R-rated content, as well as a 29% higher price of $11 U.S. a month. It will be a stand-alone service in Latin America and feature live sports.