Shares of Walt Disney (DIS 0.33%) gained 23.4% in April 2019, according to data from S&P Global Market Intelligence. The House of Mouse closed 11% higher on April 12 alone as investors were wowed by Disney's streaming video plans.
Everybody already knew that Disney plans to launch its own streaming video platform in November, named Disney+ and featuring content from the company's unmatched portfolio of original entertainment. Last month's presentation simply added more color to the sketched-out plans. Disney aims for at least 60 million subscribers by the end of fiscal year 2024, with two-thirds of those members signing up abroad. The service could add as much as 12% to Disney's annual revenues at that point, and streaming services powered by a ready-made content list of the highest caliber should run at beefy profit margins.
It's no surprise to see Disney investors getting excited about Disney+, ESPN+, and a revamped Hulu, which is now largely under Disney's control. Will Disney+ become an international behemoth to match Netflix (NFLX 2.72%) someday, or will this service fall into a smaller niche? Chances are, both Netflix and Disney+ can succeed around the globe alongside a plethora of other challengers with their own streaming plans. Either way, as a shareholder in both companies, I'm grabbing a metric ton of popcorn and settling in for an enjoyable ride.