Disney's Streaming Business Is Poised For Gains From Bundling: UBS
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Disney has several ways to boost earnings including its direct-to-consumer and content segments, analysts at financial-services firm UBS said a report.
The streaming business is set to increase sales 20% a year with subscriber growth that’s partly driven by a crackdown on password sharing, price increases and advertising sales, according to UBS’s forecast.
“A major step in narrowing the margin gap versus Netflix will come from improving average revenue per user,” the report said. “We still see pricing power for both Disney and Netflix given their relative price to viewership.”
The streaming business is set to increase sales 20% a year with subscriber growth that’s partly driven by a crackdown on password sharing, price increases and advertising sales, according to UBS’s forecast.
“A major step in narrowing the margin gap versus Netflix will come from improving average revenue per user,” the report said. “We still see pricing power for both Disney and Netflix given their relative price to viewership.”
