Could It Be A Massive Year For Disney+ in 2021?

Here at MickeyBlog HQ we are still riding the high of Disney’s incredible Investors Call last week. That being said, we’re going into 2021 relatively optimistic that the new shows announced going forward spell very good news for the fledgling streaming network and can help keep Disney afloat during extended theme park closures. 

So what do the analysts say? Is Disney+ charting a course for a massive 2021? Let’s take a closer look. 

Since the them parks shut down in March, Disney has switched gears and now sees streaming TV as the central part of its business.  During the investors presentation last week CEO Bob Chapek revealed that the streaming network had surpassed expectations and already has 86.8 subscriber. That means it is nearing the corner on 90 million which Disney announced at the launch Disney+ that it was hoping to hit four years in! Not bad for a first year then. 

So why the huge and slightly unexpected increase in subs? As MotleyFool points out, this can be attributed to a few factors including Disney’s recent Hotstar deal ensuring that India subscribers now represents 30% of Disney’s total subscribers worldwide. Another factor is the popularity of The Mandalorian which has garnered a lot of attention for Disney+ not to mention the fact that its become a merchandising juggernaut. 

All the signs point to the fact that Disney will continue to perform strong.  During last Thursday’s call, the Walt Disney Company along with Marvel and Lucasfilm announced 10 new Marvel and Star Wars series.  In addition they shared details of over 30 other Disney and Pixar films and series.  

With theaters still shuttered Disney is using this to drive viewers to Disney+. Later this month Pixar’s next featuring length film Soul also make its debut on Disney+ and Raya and the Last Dragon will also go directly to the network next March 2021. 

As Motley Fool points out, Disney+ will also be expanding its reach into Eastern Europe, South Korea and Hong Kong in 2021 as well as expand the Star general TV entertainment service which will go into markets like Europe and Latin America next year.  

There were other announcements made on Thursday that aren’t as popular as the streaming line-up but that could still be a HUGE factor in ensuring the network’s future success. One such example is that Comcast has agreed to distribute Disney+ on the Xfinity X1 set-top box which will in turn open up the service to an additional 20 million more households. Then there’s Hulu which also brings 38.8 million subscribers to Disney as well as ESPN which offers another 11.5 million subscribers. 

Put simply, the way households seek out entertainment has rapidly shifted to at-home TV, and Disney looks ready to pull out all the stops to capitalize.

Image Credit: Disney

Though all of this is incredible news for Disney+ and by extension the Walt Disney Company it should be noted that Disney still needs to offset the cost of it’s theme park business which had billions of dollars in losses this year. These losses are also expected to continue into 2021 with families reluctant to travel or head to the theaters due to COVID-19. 

So when will all this become profitable?   According to MotleyFool, Disney+ is expected to operate profitability by 2024 at which time Disney+, Hulu and ESPN+ are projected to have 300 million global subscribers. At this point Disney said that $14- $16 billion will be set aside each year for content. 

The MotleyFool piece predicted that Disney+ along with Hulu and ESPN is on target to add millions of new subscribers into 2021.  Disney recently announced a $1.00 monthly price increase as well making subscriptions even more profitable. If the increase in subscription revenue from a solid streaming line-up is met with a gradual reopening of the theme parks- next year could be momentous for Disney. 

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Source: MotleyFool