Call it perhaps the last bit of low-hanging fruit being plucked, but entertainment giant Disney (DIS) is taking a step it probably should have taken well before now. It is offering up its Disney+ content to guests of the Disney theme parks, and making it sufficiently easy that anyone can access it through the TV system itself. Oddly, this did not sit well with investors, who sent shares sliding nearly 2% in the closing minutes of Monday afternoon’s trading.
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Basically, noted WDWMagic, Walt Disney World Resort hotel guests could watch Disney+ content through their in-room televisions by using their devices to cast the content to the screen in question. But now, Disney is greatly simplifying the process by building the app right into the in-room televisions.
Perhaps the only downside is that users will still have to authenticate with their own account details, which seems a bit unnecessary; it’s Disney’s own content on Disney’s own hotels. You would think Disney could give its own guests a chance to watch its own streaming platform for a few nights gratis. But at least the system will automatically log users out when their stay has reached its end. The new feature will not be arriving all at once but rather piecemeal, depending on the property.
Growing Content Concerns
While Disney is out to make it a little easier to view its content, it may not be able to smooth over all its issues. A report from Allears.net, a Disney industry publication, found that there’s a growing backlash against the trend to create live-action remakes of animated Disney fare. They are increasingly considered unimaginative, and with complaints growing about their “newer original stories,” these are considered attempts at “the easy money.”
A report from Forbes, meanwhile, underscored the sheer necessity of getting money in from somewhere, pointing out that just four Disney properties—The Acolyte, Secret Invasion, Andor, and Loki: Season 2—set Disney back a combined total of just under $1 billion.
Worse, the results offered no clear pattern: Loki proved both the second most popular title with an 82% audience score on Rotten Tomatoes and the least expensive at just over $167 million. But the biggest flop at an 18% audience score, and second least expensive at just under $208 million, was The Acolyte.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DIS stock based on 15 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 24.9% rally in its share price over the past year, the average DIS price target of $125.17 per share implies 9.25% upside potential.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
