In this video, I will be talking about the state of Disney's (DIS 1.94%) business and its recent announcement that might propel the stock to new heights. You can find the video below, but here are some of the highlights:
- Last month it was reported that Disney is working on building a master-planned community for residential living, designed by the company's creative staff. As of now, only one location has been announced, in Rancho Mirage, California.
- Disney+ will introduce an ad-supported subscription offering in late 2022 beginning in the U.S. with plans to expand internationally in 2023. This is great for both the business and the consumer. Consumers will be given more choice and control, and as for Disney, it is a way of attracting new subscribers and advertisers.
- Management expects Disney+ profitability by 2024 and to have reached between 230 million and 260 million subscribers. It plans on adding 50 extra countries this summer and 160 by summer 2023. Right now that's at 64.
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Management said during the earnings call that programming costs will increase $800 million to $1 billion in streaming and $500 million in linear. That will result in a negative impact on operating income in the second quarter.
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Disney reported Q1 earnings per share of $1.06, beating the expected $0.61 by the Street, and revenue of $21.8 billion, beating the expected $18.63 billion.
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*Stock prices used were the closing prices of March 4, 2022. The video was published on March 8, 2022.
