We're closing in on Walt Disney's (NYSE:DIS) Investor Day. On Thursday afternoon, the media giant will make a financial presentation that, like Avengers: Endgame, will clock in with a running time north of three hours. There have been a couple of analyst upgrades and price target hikes in the days leading up to the event, so naturally the market is expecting this to be a fairly positive presentation. Disney has a lot of ground to cover given all of its moving parts. Let's go over some of the things that may or may not be discussed during the event, which will be webcast so that everyone can attend virtually. 1. Disney+ The only topic that we know Disney will certainly discuss is its upcoming streaming service. The brief description for Disney's Investor Day specifically states that it will focus on its "direct-to-consumer streaming services including the upcoming Disney+." Disney expects to launch the service later this year, and we have already been treated to details of some of the original shows that will join the entertainment behemoth's massive and growing content catalog on the platform. We are unlikely to get an actual launch date, but a little more fine-tuning on that front wouldn't hurt. Pricing is going to be a hot topic. Disney has said that it will be cheaper than Netflix (NASDAQ:NFLX), and that was before Netflix boosted its monthly rates by as much as 18% earlier this year. If the launch date is close, it may be safe for Disney to begin talking about the price so it can start pumping up its value proposition. 2. Fox Disney finally closed on its acquisition of key Fox assets last month, and this is the first time that it can brag about its haul without nervously eyeing antitrust regulators in the shadows. Since Disney+ will be the featured star of the evening, it's more than reasonable for details to emerge on how some of the Fox puzzle pieces will fit into the new service. Will some freshly acquired shows like The Simpsons and The X-Files now be part of the upcoming service? Are any of the Fox properties being tapped for original shows, as has already announced for Lucasfilm and Marvel content? Disney has more intellectual property than anyone else in taking on Netflix later this year, but how will it use all of that ammo? Beyond Disney+, it would also be nice to hear more about how the entertainment juggernaut expects to play with its new toys. 3. Disney World and Disneyland We already know that the first phase of Star Wars: Galaxy's Edge will open next month at its original Disneyland park in California, followed three months later in Florida with Disney World's version. Crowds are expected to be massive at both resorts in the days, weeks, and likely even months after the highly anticipated attractions debut. There are still plenty of other things going on -- particularly in Florida -- that Disney might be open to addressing on Thursday (because there's no way that it can spend 210 minutes talking about streaming video). Is there any more insight on Rise of the Resistance, the Star Wars: Galaxy's Edge ride that won't open in the first phase? The potentially bar-raising attraction is expected to open later this year, but that will only make things more problematic for the lone ride that will be introduced in the first phase. After all, divide the park's daily attendance by the likely hourly capacity of Millennium Falcon: Smugglers Run and most of the people at either park on any given day won't be able to ride it. Rise of the Resistance can't open soon enough. Why is Disney so tight-lipped about Mickey & Minnie's Runaway Railway? The first Mickey Mouse-themed ride was announced two years ago with a 2019 opening date. Disney confirmed that the attraction will open this year back in February, but that was before it unveiled the opening of Star Wars: Galaxy's Edge in two phases. Will the replacement for the iconic Great Movie Ride at Disney's Hollywood Studios get pushed into early 2020 since the resort won't need extra ammo during the latter half of the year? Can Disney provide narrower windows for other upcoming rides and attractions? There is a lot of construction activity taking place in Florida as Disney gears up for the resort turning 50 in 2021. One addition -- the Skyliner gondola lift system that will whisk guests from select hotels to half of its theme parks -- is already testing without guests despite its stated fall opening. Folks have never been as confused as they are right now in planning their next Disney getaways. Firming up some dates and details could help finalize travel plans.<doc-sep>After months of Disney CEO Bob Iger doling out tidbits of information, investors will finally get their first look at Disney's streaming service on Thursday. Dubbed Disney+, the direct-to-consumer subscription video service has long been talked about and is expected to launch by the end of 2019, but few details are clear. Iger has dropped hints that the service will feature original content from "Star Wars," Pixar and Marvel, as well as a catalog of Disney's classic animated features and live-action flicks. So far, a Scarlet Witch and Visions series, a Loki series and a "Monster's Inc." series have been confirmed for the platform, as well as a live-action remake of "The Lady and the Tramp." Rumors have also circulated about a Bucky Barnes (the Winter Soldier) and Sam Wilson (Falcon) series and one centered on Clint Barton (Hawkeye). This information hasn't satiated investors, however. Shareholders are awaiting answers to key questions: When will the platform launch? How much will it cost? How much content will be on the service? Will the service integrate 20th Century Fox content? How many subscribers are they expecting? The list goes on. Currently, there is only speculation. Many analysts have predicted that Disney could charge as low as $5 to $7 a month for its service, around half of what Netflix costs for its standard HD plan. Disney has signaled that it intends for the platform to be much cheaper than its rival. "Consumer demand for Disney-branded content is evident in its share of annual box office, and our recent AlphaWise survey data also indicates healthy levels of interest in the US for Disney product at an $8/month price point," Morgan Stanley analyst Benjamin Swinburne said in a research note Monday. Disney has also hinted that it is interested in bundling it with ESPN+ and Hulu, which it owns a 60% stake in. However, it's unclear if Disney+ will coexist with these other services, particularly considering 40% of Hulu is owned by Comcast (30%) and AT&T (10%). Disney is also entering the streaming space at a time when competition is high. Comcast, Warner Media and Apple have plans to launch their own stand-alone services. Netflix already has around 139 million subscribers, while HBO's subscription base is estimated to be slightly north of that number. "We believe the Disney+ DTC service is well positioned to have an extremely strong launch that surpasses consensus subscriber expectations," Cowen analyst Doug Creutz said wrote in a research note Tuesday. "With the upcoming analyst day likely to provide a needed number reset (for near-term Fox deal dilution and DTC costs), investor focus can shift to this positive catalyst path, and dreams of Netflix-like valuations for the DTC business in years to come." Disney has an incredible archive of content and a very strong box office presence. Now that it is no longer licensing its newly released films to other services, customers will have to either buy the DVD or Blu-ray release or sign up for Disney+ to see the content. Disney also has a very appealing slate of family-friendly brands, something that most of the other services do not have. This could differentiate it from its competitors and entice families with children to purchase the subscription. Thursday should bring more clarity for investors and the consumers eagerly awaiting the service's release. However, Disney isn't likely to give guidance on its earnings. "Heading into Disney's investor day, we are surprised at how many investors have been asking 'do you think Disney will give guidance?,'" Bernstein analyst Todd Juenger said wrote in a report Monday. "No, we don't." "While Disney doesn't give guidance, they are adept at signaling," he said. "We will be focused on their posture of aggressiveness." Most analysts have signaled that the Fox merger will have more of an impact on earnings and earning forecasts for the company than Disney+, at least in the near-term. Disney is expected to report second-quarter earnings on May 8. Its stock, which has a market value of $210.1 billion, has gained 16 percent in the past year.<doc-sep>Text size Walt Disney stock edged lower despite an upgrade from BMO Capital Markets highlighting factors that could lift shares of the media giant. The back story. Disney investors haven’t seen much of the kingdom’s magic in recent years, and the shares are up less than 7% year to date, about half the gains seen by the S&P 500. While it’s hard to think of a media firm with more box-office hits or more popular theme parks, Disney hasn’t been immune to the cord-cutting that’s hit so many of its peers, and there are concerns about how it will digest the big chunk of Fox Corp. (FOXA) assets it purchased earlier this year. (Fox shares common ownership with Barron’s parent company News Corp (NWSA)). Nonetheless, some analysts have been encouraged by Disney’s recent earnings and are confident the stock can break out of its trading range. They’re also upbeat about its coming streaming service, Disney+, which many say could be a real rival to Netflix (NFLX). Investors remain hungry for more details on that score. What’s new. On Wednesday, BMO’s Daniel Salmon raised his rating on Disney to Outperform from Market Perform and raised his price target to $140 from $114. Editor's Choice He writes that his main knock against the stock has been a lack of factors that could boost the shares. Yet now, with two Star Wars-themed lands opening in the domestic parks this summer, the launch of Disney+ before the end of the year, and the chance Disney could start to repurchase shares again over the next year, he thinks that there’s plenty to drive the stock higher. Any decline in the stock is likely to be small because buying interest has emerged repeatedly at around $100-$110 a share, he said. That said, he still likes Netflix and Amazon.com (AMZN), which is investing more in original content and streaming, better than Disney, but he is now “comfortable recommending all three, as we expect them all to be long-term winners in global direct-to-consumer (DTC) streaming,” Salmon wrote. Looking ahead. Disney’s investor day is Thursday, and Salmon isn’t alone in recommending the stock. The event could offer some long-awaited information about Disney’s future. Salmon says he expects management to “1) end the debate on how low near-term EPS goes; 2) offer a subscriber-based key performance indicators (KPI) for the DTC businesses, and pricing for Disney+, and; 3) give enough information to make informed estimates of mid- to long-term profitability/EPS.” Following the event, Salmon says, investors are likely to move from valuing Disney as the sum of its parts toward evaluating the shares on a subscriber/revenue basis for the DTC business, and in terms of earnings for the core businesses. That could lead to a higher valuation. Ultimately, Disney remains one of the most powerful names in media with a portfolio of profitable brands that continue to resonate with consumers. While it seems like every day that a new company tries its hand at streaming, Disney’s clout and content make it a heavy hitter. Investors have been eager for details about what will follow the 21st Century Fox deal and about Disney+, so as long as the company presents a relatively upbeat outlook, the shares could get a boost from the investor day. Disney was down 0.1% to $116.82 in morning trading.<doc-sep>Walt Disney Co. stock surged Friday to a record level after the entertainment company offered more information than expected about its bold plunge into the burgeoning streaming video market. Disney’s stock jumped 11.5% to an all-time high of $130.06 a share, also marking its biggest one-day jump in a decade. By contrast, rival Netflix shares fell 4.5% to $351.14 on Friday. The leap in Disney’s share price follows Thursday’s investor meeting on the company’s Burbank lot where executives shared plans for Disney+, an ad-free subscription service that Disney will launch Nov. 12, charging $6.99 a month or $70 a year. “Disney+ could be a potential game-changer in a rapidly evolving streaming landscape, with possible bundling options with its complementary ESPN+ and Hulu streaming offerings,” wrote CFRA analyst Tuna Amobi in a research note. Advertisement During its 3½-hour presentation, Disney gave investors the first real glimpse into the company’s streaming strategy, which is fueled by a cadre of powerful franchises such as Marvel, “Star Wars,” Pixar and “High School Musical.” The Disney+ platform is an attempt to compete with Netflix Inc. and others in the streaming arena as audiences increasingly turn to online services. The offering is part of Chairman and Chief Executive Bob Iger’s broader strategy to adapt to changes in the media landscape, as people increasingly eschew traditional cable television packages and expect more films to be available in the home. In its first year, Disney+ will host more than 7,500 television episodes, 400 older films and 100 recent theatrical releases, the company said. By the fifth year, Disney expects to annually produce 50 original series, including returning seasons, and at least 10 original movies, documentaries and specials. Disney plans to spend more than $1 billion on original content in fiscal 2020 for the streaming service. Disney+ is projected to have 60 million to 90 million subscribers, mostly from international markets, and be profitable by 2024, executives said. “The aggressive numbers … are a direct result of us being all in from the beginning,” Iger said. The investor day came less than a month after Disney completed its $71.3-billion acquisition of 21st Century Fox, including its movie and TV studios, cable networks and Fox’s 30% stake in Hulu, giving Disney 60% of the streaming service. The deal was largely driven by Iger’s desire to own more intellectual property to compete with streamers that are spending billions each year on their own original content. “While this is an exciting time, it’s also a challenging time,” Iger said. “The combination of Fox and Disney unites businesses with the same mission and creates a team of talented, experienced and visionary leaders that will ... enable our 96-year-old company to thrive and to grow [and] to be more relevant than ever as we enter our second century.” The gathering of investors, analysts and journalists was held in a cavernous soundstage on the Disney lot that was converted into an auditorium. The stage was built in 1949 and used to shoot the original “Mary Poppins” and “Pirates of the Caribbean.” “Star Wars” Stormtroopers greeted attendees at the door. A giant screen featured a projection of sparkling plus signs resembling pixie dust. Advertisement Disney kicked off its presentation with sizzle reels showing clips of Disney films, ABC news clips, and the building of Disney’s theme parks, along with such Fox properties as “The Shape of Water” and “Avatar.” Kevin Mayer, chairman of Disney’s direct-to-consumer business, took the audience through a virtual tour of its service, which is organized into five distinct brands: Disney, Marvel, Pixar, “Star Wars” and former Fox property National Geographic. Disney’s content will be available for consumers to download onto their devices for offline use, Mayer said. “The fact that we have the brands that matter is the single biggest differentiator for our service,” Mayer said. Disney took pains to showcase the company’s array of popular brands that will be funneled into the service. Disney+ will be the permanent home of animated films, including classics such as “Snow White and the Seven Dwarfs,” “The Little Mermaid” and “Bambi.” It will have Pixar films, Marvel movies such as “Captain Marvel” and the “Star Wars” film saga. Also joining the app will be 250 hours of National Geographic content and 5,000 episodes of Disney Channel and Disney Junior programming. Advertisement Some Fox film and TV properties will have a presence, too. The company said the first 30 seasons of Fox’s “The Simpsons” will be available on the service. The Fox network will continue to air first-run episodes of the iconic animated TV show. Fox properties including “Malcolm in the Middle” and “The Sound of Music” will live on the app. Addressing the relatively low $6.99 cost of the ad-free service, Iger said, “This is our first serious foray into this space, and we want it to be available to as many people as possible.” Jennifer Lee, chief creative officer of Walt Disney Animation Studios, said the service will have a documentary series about the making of the upcoming film “Frozen II.” Pete Docter, Lee’s counterpart at Pixar Animation Studios, said Bo Peep of the “Toy Story” franchise will get her own short film called “Lamp Life.” The company is also making a series called “Forky Asks a Question,” featuring a new character from “Toy Story 4.” Marvel Studios President Kevin Feige teased original shows for the service, including “WandaVision” and “The Falcon and the Winter Soldier,” featuring characters and actors from the Marvel feature films. Advertisement Lucasfilm’s Kathleen Kennedy brought Jon Favreau onstage to talk about “The Mandalorian,” the upcoming “Star Wars” series about a lone gunman on the outer edges of the galaxy, set a few years after the events of “Return of the Jedi.” And Sean Bailey, who heads Disney’s live action film production, touted “Noelle,” a holiday comedy starring Anna Kendrick as the daughter of Santa Claus, and the studio’s live-action retelling of “Lady and the Tramp.” Bailey promised that the productions for the service would be “treated with the same love and care as our theatrical titles.” Disney executives also gave presentations on Disney’s existing direct-to-consumer businesses, including ESPN+ and Hulu.<doc-sep>
As much as we already know about Disney+, there’s a lot we still don’t know. That’s about to change at an investor presentation on April 11, when Disney will give a demonstration of its yet-to-be-launched streaming service, as well as showcase some original content that’s being developed for it. Additionally, Disney will discuss its overall direct-to-consumer (DTC) business — which includes its majority ownership of Hulu and streaming technology company BAMTech, ESPN+, and Disney+ — in greater detail. Much of what consumers know about Disney+ centers around the content it will offer, but the market is poised to know more about how the video streaming platform itself works. Currently, it’s known that Disney+ will be anchored by Disney’s entire classic film library and act as the exclusive U.S. streaming home for movies that the company releases theatrically moving forward. Disney+ will also offer content from Disney’s Pixar, Marvel, Star Wars, and National Geographic brands. But details on Disney+ aside from the content it will offer are less clear. The service is expected to be “substantially cheaper” than Netflix and release in late 2019, but no concrete price or launch date has been announced. Disney CEO Bob Iger has previously signaled interest in bundling Disney+, ESPN+, and Hulu, but it’s still unclear exactly how Disney+ will coexist with those two other services. Price, launch date, and the interplay between its streaming businesses are key areas investors are expecting to hear about at Disney’s event. Consumers are also likely keen to figuring out how they will be able to navigate through and access the various content from Disney’s different brands on Disney+. Disney video streaming push is a costly venture, and the event will allow the company to provide a clearer picture of how Disney+ will be beneficial to its bottom line in the future. BTIG estimates Disney will lose out on $500 million per year by no longer licensing content to Netflix, for example. And RBC Capital Markets earlier this year estimated that Disney will spend $500 million on Disney + original programming in 2019. Moreover, Disney has already has over $1 billion in losses tied to streaming, without Disney+ being launched yet. In a January 2019 filing, Disney reported a loss of $469 million in its DTC segment for its fiscal year 2018, mainly spurred by BAMTech; Disney also said Hulu was the main driver of a separate $580 million equity investment loss for its fiscal year 2018. However, in order to quell investor concerns, Disney could use the event to provide more color on how it plans to minimize losses moving forward, as well as how it will recover from lost licensing revenue. Providing Disney+ subscriber projections would also be helpful, although it seems unlikely that Disney would publicly disclose this information and add fuel to the fire of chatter surrounding its position in the streaming wars. BTIG estimates that Disney needs about 7 million subscribers to make up for its licensing revenue loss. This likely won’t be a difficult hurdle for Disney to clear as Wells Fargo has estimated that Disney+ will attract 10 million subscribers after one year on the market in a base case scenario. User experience may not be a make-or-break factor for Disney+, but being able to demonstrate that its upcoming streaming service is easy to use could be fruitful for Disney’s aim of further enticing SVOD subs. Consumers indicated that an interface that’s easy to navigate is one of the most important attributes of the video streaming services they choose to buy, according to a Nielsen report published in March 2019. There’s already some preliminary interest in Disney+, but original content that’s showcased at the event could embolden more consumers to gravitate toward the service. Twenty-four percent of U.S. consumers with a Netflix subscription expect to tack on a Disney+ subscription, while 8% expect to replace their Netflix subscription with Disney+, according to a recent survey by Wall Street brokerage firm SunTrust Robinson Humphrey. Even if consumers are left with many unanswered questions after its streaming service-unveiling event (similar to how some felt after Apple’s splashy Apple TV+ reveal event), the company still has several tricks up its sleeve it could reveal at the event that would accelerate Disney+ uptake after its launch. For example, Disney could give Disneyland and Disney World attendees free access to Disney+ for an extended period of time, like six months.