Launching a new streaming service just ahead of a global pandemic proved fortuitous for entertainment giant Disney as it has benefited from a literal captive audience in lockdown.

The company is way ahead of its initial plans for subscriber numbers, helping its shares reach an all-time high as it unveiled (10 Dec) ambitious content pipeline plans.

Initially Disney was targeting 60 million to 90 million global subscribers for Disney+ by the end of its September 2024 financial year. As of 2 December 2020, it had already hit 87 million and those 2024 targets have now been increased to between 230 million and 260 million.

The company is also raising the price for Disney+, a move which is underpinned by the wealth of content both new and historic, on or coming to the platform.

This roster of fresh content is set to increase significantly in the coming years with 105 new films and TV series announced at its investor day, of which 80% will appear on Disney+. Some will even debut on the streaming service rather than appear in cinemas first.

Among the projects planned are a prequel to the Lion King, a new version of the Little Mermaid plus a whole roster of new Marvel titles and a new entry in the Indiana Jones series.

The Star+ platform, which will be included within Disney+ in Europe, will add more shows pitched at adult audiences, helping to broaden the streaming service’s appeal.

Creating all these new series and films will involve a significant amount of spending. This will impact earnings with Disney guiding for maximum dilution in 2021. However, the pay-off in the longer term could be significant as it positions itself to dominate the streaming space.

The coronavirus crisis has led to a rapid reshaping of the business with streaming becoming the main contributor to revenue.

In doing so this part of the group has overtaken the theme parks, many of which have been closed for at least some of 2020 due to Covid.

The parks division should benefit as the world emerges from the pandemic, even if the timing is uncertain, particularly when it comes to travel restrictions.

As we discussed in this in-depth piece from March these resorts are highly profitable and generate lots of cash. They also play a critical role in making its creations resonate with consumers.

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