Disney+, the streaming service offered by The Walt Disney Company (NYSE: DIS), has experienced much growth since its emergence in November 2019. At the company's recent Investor Day event, Disney executives forecasted that the streaming service's subscribing base will grow to a range of 230 million to 260 million by 2024, making the company a frontrunner in the expanding "streaming wars."
Ten million subscribers signed up on the first day of its launching, which far surpassed any immediate goals or expectations the Disney had for the platform. Disney+ has already far exceeded the number of paying subscribers compared other rival streaming services such as HBO Max (NYSE: T) and Apple TV (NASDAQ: AAPL) in just one year alone, demonstrating high consumer favorability and growth potential. It has sought out original content in the hopes that it will bring in new customers and establish key direct-to-consumer business, particularly with COVID-19 related stay-at-home orders still in play.
At Disney's Investor Day, company officials unveiled over 100 new projects, some of which involve mature content so as to attract a higher amount of viewers outside of the company's usual family friendly content. Some of the most popular listed television shows coming to the platform included "Modern Family" and "Atlanta," while Disney also plans to expand other series in its repertoire from franchises like Star Wars and Marvel, as well as subsidiaries like FX and National Geographic.
While the cost of Disney+ is expected to rise from $7.99 to $8.99 in March 2021, the cost is still far less expensive than rivals like Netflix (NASDAQ: NFLX), priced at $14 per month, and HBO Max, which is $14.99 per month. This will continue the platform's growth momentum, especially among bargain hunting consumers.
Since many individuals are stuck at home and looking for an entertaining show to watch due to the pandemic, Disney+ is taking advantage of this opportunity in order to particularly showcase their business. CEO Bob Chapek stated at the Investor Day especially that Disney+ will expand their services to include even more unexpected titles that could snag an audience's attention.
Disney's former chairman and CEO, Robert Iger, additionally said that the services ought to be about "quality, not volume." In other words, the services of on the streaming platform should contain "valuable" content rather than merely appealing to the masses. Pixar and Star Wars films (some of which are yet to be released) have been coined as especially valuable to the company since they are popular with consumers.
Current CEO Chapek said in concluding statements, at the meeting, that meeting customer needs is all about maintaining "balance" and then appealing to their wants. Understanding customers' interests is particularly important as a starting point, and then going from there.
Disney+'s growth is expected to change exponentially in the months and years to come, as the entertainment giant shifts its focus toward home entertainment and attracts a broader audience.