Tuesday's Market Minute: Disney+ & Hulu: The Whole Package?

The Walt Disney Co DIS ramped up the hype for the Disney+ launch this past weekend at the D23 Expo, announcing a slate of new programming for Marvel and Star Wars, and allowing attendees an early sign-up with a 3-year contract.

In the streaming wars, Disney+ seems to be the only current serious competitor to Netflix: it has original programming with wildly popular intellectual properties, a back catalogue of beloved childhood films, and the juggernaut Walt Disney owns both ESPN and most of Hulu, allowing subscribers to bundle all three services for just $12.99/month. Sounds like a steal for the whole family! Though Netflix Inc NFLX is the established player in the industry, Disney seems confident that if they can't beat them, they can at least coexist.

Unlike Netflix, this isn't the only revenue stream for Walt Disney either, with a plethora of theme parks, box office hits, and merchandising, driving their revenue up to $20.25B last quarter alone. The more tie-ins Disney makes, the more they can entice consumers. Even if they're only watching one IP like Marvel or Star Wars, the service costs just $6.99/month, affordable for a broad sector. Though the consensus right now is that multiple streaming services can and will coexist, the question is, how will we all decide what to watch?

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.
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