{"id":215576,"date":"2019-03-13T05:53:49","date_gmt":"2019-03-13T09:53:49","guid":{"rendered":"https:\/\/insidebitcoins.com\/?page_id=215576"},"modified":"2022-12-15T11:14:17","modified_gmt":"2022-12-15T11:14:17","slug":"disney","status":"publish","type":"page","link":"https:\/\/insidebitcoins.com\/buy-stocks\/disney","title":{"rendered":"Buy Disney stock – How to buy Disney (DIS) shares and what to look out for"},"content":{"rendered":"
Everyone has fond memories of growing up with Disney characters. Mickey Mouse is almost a century-old, and he still makes Walt Disney his home. Although the entertainment industry is constantly changing, Disney has always made content king. So as Disney launches its own streaming service Disney+, the Mouse House is spending billions on acquisitions and in-house content development.<\/p>\n
As Disney increases its content budget to bring more of its popular movie themes to streaming channels and theme parks near you, this guide explores whether Disney’s plans to win hearts with streaming media will be profitable, how to buy Disney stock, and the best Disney stockbrokers.<\/p>\n\n
If you follow the investment advice to invest in stocks you love, then you probably already invest in Disney stock. The 22 percent average stock returns of the last decade, before dividends, would have rewarded you for your loyalty. But Disney, like many media businesses, is experiencing a steady decline in Pay TV subscriptions as subscribers disconnect from cable for cheaper, mobile Netflix streaming. Always in step with entertainment and media trends, Disney is now doing its content magic on its own streaming service, Disney+.<\/p>\n
The question for investors is, do you Amazon stock<\/a>, Google stock<\/a>, AT&T WarnerMedia stock or Disney stock? All these media giants are entering the streaming video market. Following the launch of ESPN+ in 2018, Disney is ramping up its content for the launch of its Disney+ streaming service this year.<\/p>\n As more subscribers “cut the cord” of their cable service, here is why Disney has a content edge in streaming media.<\/p>\n Disney’s valuable content collection<\/strong><\/p>\n Disney’s big rollout in 2019 of its own streaming service includes content from the franchises of some of the greatest box office hits of all time. The entire motion picture library of Disney is moving to Disney+. In addition to Disney’s perennially popular content, Star Wars, Marvel, and Pixar will headline the new service. National Geographic, which Disney picked up in its recent purchase of 21st Century Fox Studios, is also on board.<\/p>\n Getting land in Disney Parks and Experiences <\/strong><\/p>\n All of the new content produced for streaming will eventually make more money for Disney through its theme parks, consumer products and cable channels as viewers seek “to experience the stories and the characters, the places, that were part of the movies they loved”. Disney theme parks have been able to raise the price of tickets and hotel rooms this year.<\/p>\n High brand value<\/strong><\/p>\n ABC and ESPN have benefitted from Disney’s high brand value. So while subscriptions are falling, cable and broadcast networks have been able to raise prices for affiliate and advertising fees. ESPN as the top sports network can charge the highest advertising and affiliate fees in the industry.<\/p>\n <\/a><\/p>\n Higher content costs<\/strong><\/p>\n Disney’s expenses are rising, and the home of Mickey Mouse says content for the new streaming app is the main cost pressure. Added costs for the streaming play are estimated at $1 billion a year. Expenses rose 8 percent in 2018 to $44.6 billion. As Disney prepares to take on Netflix, it no longer has content licensing revenue from Netflix. Five or six additional movies are being made to provide content for the streaming business. TV series like Star Wars: Rogue One<\/em>, currently in production, are sure to pay off quickly as loyal fans give Netflix some competition.<\/p>\n Streaming competition<\/strong><\/p>\n AT&T WarnerMedia is introducing its own streaming service this year, following its $84.5 billion acquisition of Time Warner. Netflix currently makes $100 million an episode on WarnerMedia’s Friends<\/em>. As the media giant’s stock loses value, the value to buy Netflix stock<\/a> is rising. The service will include HBO, TBS, TNT, Turner Sports, the Cartoon Network, and the Warner Bros. studio. Discovery and Comcast are other competitors launching a streaming service.<\/p>\n Walt Disney studios revenue decline<\/strong><\/p>\n Disney recorded record revenue of $59.4 billion in 2018, boosted by the box office hit Black Panther<\/em>, which won Marvel’s first Academy award. Nevertheless, in 2018 and 2019, studio revenue has been declining following the $1.3 billion Star Wars: The Last Jedi<\/em> hit in 2017. Long-term investors who hold tight over the rollercoaster revenues of the movie industry have been rewarded by Disney stock.<\/p>\n The home to the famous Disney characters has been expanding its content library by buying other entertainment companies. The media giant is also the home of Marvel and its superheroes, Pixar, and Lucasfilm and its Star Wars franchise. With its $71 billion acquisition of 21st Century Fox this year, Avatar, X Men, Indiana Jones and the Simpsons have joined the Mouse House. As subscriptions fall across Disney’s media businesses and it transforms into a streaming media company, how should the business be valued? Let’s look at how Disney is valued next to its competitors.<\/p>\n Disney’s price-to-earnings ratio at 15.6 is higher than that of Comcast’s at 15.3 and AT&T WarnerMedia’s at 10.6. But if you buy Netflix stock<\/a> – a pure streaming media play – you will pay a significantly higher P\/E ratio of 135. The market is placing a more than 8x value on the streaming media business. Although Netflix initially struggled with rising content costs because it had to license content, Disney has a full content house. It is producing one-fifth the new content of Netflix for Disney+. Since Disney is making huge acquisitions and investments in content development, the return on invested capital (ROIC) tells us how profitable the company is. Disney’s ROIC at 16.4 reveals it to be creating more value from acquisitions than AT&T WarnerMedia at 15.7 and Comcast at 9.6.<\/p>\n <\/a><\/p>\n \n<\/p>Pros to buying Disney<\/h3>\n
Cons to buying Disney stock<\/h3>\n
Disney Stock: Current Prices and Summary<\/span><\/h2>\n
DIS stock summary<\/span><\/h3>\n