With the surprising one-day sign-up boost of 10 million subscribers -- mostly from a free Verizon promotion -- one analyst believes Disney+ will move into next year with many of those subscribers keeping the service.
Todd Juenger, media analyst of Bernstein Research, expects Disney+ to have between 15 million and 18 million U.S. subscribers by the end of 2020, going to between 41 million and 45 million in 2025. Including international business, he expects between 106 million and 138 million in five years.
He estimates Disney+ could pull in between $1.6 billion and $1.9 billion in revenue in 2020 and $8.1 billion to $10.5 billion by 2025.
Juenger says: “Disney's product is wholly understood by consumers and beloved by a certain group of them. People who want it, know they want it, and will sign up quickly. People who don't want it, know they don't want it, and won't sign-up, ever.”
Disney got the big boost of a Verizon promotion, as the communications company gave its broadband customers a free subscription to Disney+ for the first year. Although the deal is free to Verizon consumers, Juenger says Verizon will still pay Disney an undisclosed amount per subscribers.
The regular monthly price of Disney+ is $6.99 a month.
In addition, Disney is offering a discounted price if subscribers sign up for long periods -- $70 for one year and $170 for a three-year subscription.
In the first day of Disney+, Walt Disney’s stock rose over 7%, shocking investors and adding more than $18 billon to the company's market capitalization..