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Disney (DIS) stock price has risen as the entertainment company has launched its streaming service in seven European countries. This has also excited investors at a time when confidence is low.
The Walt Disney Company (NYSE: DIS) stock price has risen as Disney + has opened across Europe. Sources say that the stock price has responded positively despite the prevailing COVID-19 situation. Disney (DIS) stock was at $90.79 (+5.87%) in the pre-market today. At the time of writing, DIS stock is trading at $95.51. It means that it is up 11.93%.
This has also come at a time when the stay-at-home situation has created all sorts of new opportunities for internet-based services.
Sources say that Disney agreed to launch its streaming service with 25% less bandwidth across several countries. This is to enable everyone who wants to signup to be able to do so.
Disney (DIS) Stock Price Rises Today Because of Disney + Launch Across Europe
Sources also say that the Service was launched in about seven countries at the same time. Germany, Ireland, the United Kingdom, Italy, Switzerland, Austria, and Spain. Sources say that this was a new achievement for Disney. They had ever launched a product or service before. Kevin Mayer, Chairman of Direct-to-Consumer and International said:
“As the streaming home for Disney, Marvel, Pixar, Star Wars, and National Geographic, Disney+ delivers high-quality, optimistic storytelling that fans expect from our brands, now available broadly, conveniently, and permanently on Disney+. We humbly hope that this service can bring some much-needed moments of respite for families during these difficult times.”
France is expected to join the list on April 7th. The delay is to reportedly allow the French telecommunications companies to prepare for the launch of the service.
Portugal, the Netherlands, and Belgium are expected to join this list sometime around summer. Sources also say that Disney is rolling out extensive packages for the service. This includes a collection from various providers. 26 Originals to the service are meant to create a feeling of authenticity. Thousands of television episodes will help reduce the anxiety that many families will be feeling.
Disney’s content library is reportedly massive. With content coming from providers such as Pixar, Marvel, Star Wars and National Geographic.
This also allows the family entertainment company to compete against rivals. It also gives the company leverage to work with at a time when content developers won’t be able to generate content. Its family-friendly outlook also allows for something for everybody regardless of age.
However, some issues may arise as regards live content. ESPN has had to work around its live event issues due to cancellations of major sporting events worldwide.
COVID-19 Affects Disney’s Businesses
Covid-19 has not been friendly to Disney (DIS) stock. The family entertainment company has had to shut down several parts of its business in recent times. As such, its stock prices also went south. This, however, doesn’t mean that its business model is not sound. Source had referred to investors doubting its leadership when Bob Iger stepped down as CEO. This didn’t go down well with many but the new management seems to be doing just fine.
Disney may seem to be the only bright spot in the entertainment business right now. Ad revenues from the launch of the services will help balance its books and keep some income flowing. Sources have indicated that the company wants to take a $6 billion loan.