Disney’s Video Streaming May Help Shareholders Have Magical Days

Bob Carlson

Disney’s video streaming service that its Chairman and CEO Bob Iger said would roll out later this year may lift the company’s stock price when it starts providing the company’s best content directly to its customers.

The Walt Disney Company (NYSE:DIS) paid $71 billion to acquire 21st Century Fox to strengthen its movie content for its planned Disney+ direct-to-consumer (DTC) video streaming offerings. Disney is joining AT&T (NYSE:T), which spent $85 billion to acquire Time Warner, and other major companies in trying to offer its content directly to consumers the way that Netflix, Inc. (NASDAQ:NFLX) and other video streaming providers do.

Disney has amassed a treasure trove of video content since its launch in October 1923 by its namesake Walt Disney. Iger said during the company’s Feb. 5 earnings call with analysts that its “number one priority” is its direct-to-consumer video streaming media business.

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Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce,Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter:

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