Disney has officially launched its ad-supported tier and raised prices on its ad-free option as streaming competition heats up.
After growing like a weed during the pandemic-induced lockdowns, Netflix (NASDAQ: NFLX) fell on hard times. The combination of tough year-over-year comparisons and slowing growth, plus an ill-timed price increase, sent the streaming platform's rampant growth into reverse, shedding nearly 1.2 million subscribers during the first six months of 2022. While understandable, this analysis seems to ignore the company's biggest growth opportunity.
When it comes to multimedia entertainment, no one can hold a candle to The Walt Disney Company (NYSE: DIS). More recently, however, enthusiasm has waned as mounting losses sent fair-weather investors to the sidelines, pushing Disney stock down 13% on the day following its most recent quarterly results. As a result, they could be underestimating Disney's biggest growth engine and the equally big profits that could come as a result.