Disney subscriber success

Monday 15 February 2021

Portfolio insights

Share this

Disney’s subscriber growth continues to exceed management expectations, which were only recently upgraded at the December 2020 Investor day. The growth in Disney’s subscribers is a testament to the quality of its content and the strength of the Disney franchise. The streaming opportunity is significant, and management expect to reach 300 to 350 million subscribers globally by 2024 across their brands of Disney+, Hulu, ESPN+.

“Disney plus has exceeded even our highest expectations in just over a year since its launch with 94.9 million subscribers as of the end of the first fiscal quarter. ESPN Plus and Hulu who have also performed well with 12.1 million and 39.4 million subscriptions respectively.”
CEO Robert Chapek 12 February 2021

Between the 2019 and 2020 Investor day, management increased their FY2024 assessment of subscribers by 188 million primarily due to the explosive growth of Disney+.

Disney boasts a significant pipeline of original content in development and production. This content launches a new era of direct-to-consumer streaming delivering truly exceptional entertainment built around world renowned brands and franchises offering incredible breadth of story lines and characters to interconnect story lines maximising the return on each brand.

“We have the ability to interconnect the story lines and characters in unprecedented ways as we saw with the Mandalorian and WandaVision into the broader Star Wars and Marvel franchises.”
Robert Chapek 12 February 2021

We look forward to providing further updates on Disney as it executes its vision of bringing high quality content to an engaged and growing global customer base.

About the Author
Lachlan Hughes, CFA

Lachlan Hughes, CFA

Chief Investment Officer

Lachlan founded Swell Asset Management in 2014, wanting to create a unique investment offering – a global portfolio with a genuine long term focus. He is the CIO, with responsibility for all investment decisions of the Swell Global Portfolio. Previously he was a Senior Analyst with NovaPort Capital, a boutique fund manager owned by Challenger Limited. Prior to that, Lachlan was a corporate lawyer working with King & Wood Mallesons, The Bank of New York (London), and Allco Finance Group.

Lachlan earned the right to use the CFA designation granted by the CFA Institute in 2010. His professional qualifications include a Bachelor of Commerce (Finance) and a Bachelor of Laws.