Please ensure Javascript is enabled for purposes of website accessibility

Disney Forges Multi-Year Partnership With Sky to Expand Disney+ in the U.K. and Ireland

By Keith Noonan - Mar 3, 2020 at 11:38AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The House of Mouse's direct-to-consumer streaming service can also generate sales and add members through team-ups with telecoms.

Walt Disney's (DIS -0.28%) streaming service is already a huge hit in the U.S., and the entertainment giant is making moves to ensure the platform rapidly expands and generates distribution revenues in other territories. Variety reported on Tuesday that the company has signed a multi-year deal with Comcast's (CMCSA 0.51%) Sky Group to include the service as an add-on offering through the telecom's Sky Q and Now TV platforms.

Disney+ will launch in the U.K. and Ireland on March 24, and the rollout represents an important step in Disney's quest to build its streaming empire. It's not yet clear whether Disney+ will be exclusively available through Sky's platforms in the U.K. and Ireland. Some kind of exclusivity deal remains a possibility based on reports that Sky beat out companies including BT and Virgin Media for in-platform distribution and Disney having previously reached exclusive-distribution terms with provider Canal Plus for the service in France.

A still from Disney+'s The Mandalorian.

Image source: Disney.

Disney still has huge growth potential in streaming

Disney+ tallied about 28.6 million subscribers roughly three months after launching in the U.S., and partnerships have played an important role in building an impressive base so quickly. Disney teamed with Verizon (VZ 0.95%) to provide a bundled year-long subscription to its streaming service to the telecom company's unlimited wireless and 5G home-internet subscribers, and it will likely continue to make use of similar strategies in other territories.

Disney has a massive catalog of content and franchises to draw on for Disney+, and it's already shaken up the over-the-top distribution space. If the company adds more high-quality original content, it stands a good chance of gaining market share in streaming -- and the outlook is even more promising if it continues to make smart distribution partnerships. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Walt Disney Company Stock Quote
The Walt Disney Company
$95.65 (-0.28%) $0.27
Verizon Communications Inc. Stock Quote
Verizon Communications Inc.
$50.94 (0.95%) $0.48
Comcast Corporation Stock Quote
Comcast Corporation
$39.33 (0.51%) $0.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.