Disney’s Streaming Service is Worth an Estimated $25 Billion

For some time, it has been known that Disney is planning to launch its own streaming service for its own content. This was a consequential choice on its part, seeing as how it had reaped enormous benefits from its deal with Netflix, which had been struck at a time when streaming was just starting out. Now, it seems that Disney believes that it can benefit even more by starting up its own streaming service, which to be fair, seems to be supported by the facts.

What Is the Estimated Value of Disney’s New Streaming Service?

One analyst at Morgan Stanley has produced an estimated value of somewhere between $20 and $25 billion for Disney’s new streaming service. This is based on the assumption that Disney will be able to manage to bring in 30 million subscribers within a decade’s time, which in turn, will enable it to earn somewhere along the lines of $1.5 billion in earnings before interest, taxes, depreciation, and amortization. Something that would be problematic for most media companies, but perhaps not so much for Disney.

After all, there are a number of advantages belonging to Disney that are not available to most other media companies. For example, Disney possesses an enormous number of media properties, with more being created on a constant basis. Combined with the fact that a lot of these media properties have huge fan-bases, that means that Disney has an extensive library that it can offer to people who are interested in its new streaming service but remain unsure about whether they are prepared to subscribe or not.

Furthermore, it is important to note that one of the biggest barriers to starting up a new streaming service is the enormous amount of resources needed for the setup, which is in addition to the losses that will have to be suffered for years and years as the subscriber base builds up. However, Disney is a multinational corporation that commands enormous resources, which when combined with its access to credit means that it should be have no problems seeing its new streaming service through the earliest stage of its existence. Summed up, if there is a vertically-integrated streaming service that can succeed in the market, it seems probable that it will be the one belonging to Disney.

What Does Disney’s New Streaming Service Mean for the Market as a Whole?

Disney is one in a number of media companies that either have started their own streaming services or are planning to start their own streaming services because they recognize the profit-making potential of the market. Some of these companies are still going to work with existing streaming services, whereas others are going to go it on their own, both of which are options that offer their fair share of upsides and downsides. As a result, it will be interesting to see how both sorts of streaming services will act in order to keep themselves competitive in the new circumstances of the market. Already, Netflix and other existing streaming services are making show after show of their own, which suggests that they are getting ready for a time when they won’t be able to count on being able to show the content of their current partners.

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