Walt Disney Company to Raise Price of ESPN+ Streaming Service by 43%
July 18, 2022
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The Walt Disney Company ($NYSE:DIS) is set to raise the price of its ESPN+ streaming service by 43%, according to Sports Business Journal. The new price of ESPN+ will be $9.99 per month, up from the previous $6.99 per month. The price increase is due to the rising cost of sports rights, the news outlet added. This price increase is likely to have a negative impact on Disney’s earnings in the short term, as it will likely cause some subscribers to cancel their subscriptions. In the long term, however, the price increase may be necessary in order to keep ESPN+ viable as a business. The rising cost of sports rights is a major challenge for all sports broadcasters, and ESPN+ will need to compete with other streaming services that offer live sports.
On Friday, the Walt Disney Company stock opened at $92.9 and closed at $95.2, up by 3.7% from the prior closing price of 91.8. This was likely due to the release of the company’s fourth quarter and full-year results, which beat analyst expectations.
The Walt Disney Company is a large, diversified entertainment company with a strong presence in many different industries. Its fundamentals reflect its long-term potential, and the company is generally considered to be a safe and stable investment. The VI Star Chart shows that The Walt Disney Company is strong in profitability and growth, and weak in dividend payments. However, its overall health score is 7 out of 10, indicating that it is a financially healthy company that is capable of sustaining future operations in times of crisis. The Walt Disney Company is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. At the right price, it is suitable for those who want to invest for moderate capital gains. Due to its moderate growth rate, such companies are deemed less risky and volatile as they pursue a sustainable growth rate.
The news sent the stock price up 3.7% the following day. The move is seen as a positive for the company as it looks to increase revenue from its streaming offerings. It is also a sign that Disney is confident in the future of ESPN+. The price increase is not unexpected, as Disney has been investing heavily in ESPN+ in recent months. The company has been adding new content and features to the service in an effort to attract and retain subscribers. The price increase is likely to have a positive impact on Disney’s bottom line, as the company looks to offset declining revenues from its traditional cable business. ESPN+ is a key part of Disney’s strategy to pivot to a direct-to-consumer model. The stock price is up 3.7% on the news. This is in line with the recent trend, as the stock has been on a tear since the beginning of the year. Disney is a strong buy at current levels.
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