Wallstreet Analyst Says Disney’s Streaming Service Could Be Worth $25 Billion

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Disney surprised netizens when the company announced in August that it was removing its Marvel and Star Wars movies from Netflix so that it could prepare for its own streaming service. Though a lot of online streaming service subscribers felt upset that Disney was forcing them to try and pay another fee for a separate Disney subscription, the company seems to be bent on joining the online media platform, and analysts predict that the Mickey Mouse House might be on track towards a rewarding venture.

According to one of the latest research notes by prominent Wall Street analyst Benjamin Swinburne (via Investopedia), Disney's online streaming service could generate $1.5 billion in EBITDA (earnings before interest, taxes, depreciation, and amortization) as well as $5 billion in revenue once the site reaches 30 million subscribers, creating a $20 to $25 billion net worth asset.


"Disney's brands and content depth and breadth give it a unique opportunity among existing content producers to build a large global customer base in a direct to consumer streaming model," Swinburne explained in his note.

Though many believe that it would have been profitable for Disney to keep their deal with Netflix, Swinburne thinks that the company wouldn't have any issues coming up with 10-12 percent of the streaming giant's subscriber growth by the time 2028 arrives.

Still, it's going to be a tough climb for Disney. Even with a $9 subscription fee, when all expenses are counted, the company will need to hit 32 million subscribers just so it can break even.

What do you feel about Disney's plan to launch its own streaming service in 2019? Feel free to share your thoughts in the comment section below.

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