Mon Dec 02 15:00:00 UTC 2024: ## Disney’s Streaming Surge: Can it Double Stock Price?

**NEW YORK, December 2, 2024** – Disney’s streaming division is experiencing significant growth, potentially positioning the company for a substantial stock price increase, according to a new analysis by the Trefis Team. While Netflix remains the streaming leader, Disney’s direct-to-consumer (DTC) revenue reached nearly $23 billion in fiscal year 2024, a figure rapidly approaching Netflix’s estimated $39 billion.

Disney’s streaming subscriber base now exceeds 175 million, trailing Netflix’s 283 million but demonstrating robust growth. Key factors driving Disney’s success include a 14% year-over-year revenue increase in FY24, price hikes (the ad-free Disney+ plan now costs $16), and the successful launch of its ad-supported tier, which now accounts for about half of U.S. subscribers.

The Trefis analysis projects Disney’s streaming revenue to reach $28.6 billion by FY26, assuming continued 12% annual growth. Coupled with projected margin improvements to 25% (currently around 5%), this could yield $7.1 billion in operating earnings. Based on a conservative valuation multiple, this suggests a $210 billion enterprise value for Disney’s streaming business alone – almost equal to its current market capitalization.

Considering Disney’s substantial revenue from theme parks, television, and sports entertainment (a further $67 billion in FY24), the analysis concludes that Disney stock has the potential to double in value. The report also highlights Disney’s strategic moves, including the introduction of a paid account-sharing feature, mirroring Netflix’s successful strategy.

While acknowledging Netflix’s current lead in market share and ARPU, the Trefis analysis emphasizes Disney’s powerful intellectual property portfolio and potential for continued margin expansion. The report concludes with a $130 per share price target for Disney stock. However, the analysis cautions that past performance, including negative returns in recent years, should be considered.

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