Disney stock rose to a new high today, riding high on the success and buzz of the Disney+ launch yesterday and defying the predictions of the few people who believed that the technical problems that plagued the launch would spook investors. Instead, a reported 10 million users in the first 24 hours told the market that Disney+ was for real, and the market responded enthusiastically. Disney, who have been making some of the biggest blockbusters of the last decade with Marvel, Star Wars, and the live-action adaptations of their own line of animated classics, are such a powerful force in the industry that not only does their stock respond to these things, but so do the stocks of other companies.
When Marvel and Sony reported that they were ending their relationship and no longer making Spider-Man movies together, Sony's stock took a hit. Similarly, the Disney+ announcement excited customers so much that Netflix took a huge hit over the summer. They were down about 3% again today, and currently sit at $283 -- that's almost $100 less than the value of their stock in mid-July when they topped out at $381. Disney's new all-time high of $148.72 sounds small in comparison, but there are a lot of factors, including the massive number of Disney stocks in the market relative to a younger company like Netflix's. Still, Netflix's last reported assets were about $152 billion, which is significantly more than 2018's estimated Disney assets of around $98 billion. Given the huge changes that the market has undergone in 2019, though, it will be interesting to see how the 2019 numbers shake out in the coming months.
"Disney+ marks a bold step forward in an exciting new era for our company — one in which consumers will have a direct connection to the incredible array of creative content that is The Walt Disney Company's hallmark," Iger said in a statement earlier this year. "We are confident that the combination of our unrivaled storytelling, beloved brands, iconic franchises, and cutting-edge technology will make Disney+ a standout in the marketplace, and deliver significant value for consumers and shareholders alike."
In the light of crashing apps and absurd wait times, Disney offered a statement saying the new SVOD platform had exceeded its highest expectations, resulting in widespread issues. "The demand for Disney+ has exceeded our highest expectations," the company stated in a tweet. "We are so pleased you're excited to watch all your favorites and are working quickly to resolve any current issues. We appreciate your patience."
Earlier this month, one Disney spokesperson confirmed with us they had launched the Netherlands beta test in hopes of avoiding any major problems on launch. "Testing is a critical component of a successful product launch," the spokesperson told us. "So ahead of its global launch on November 12th, on September 12th, Disney+ launched in beta in the Netherlands to ready the technology for consumer usage at scale ahead of the November 12th launch."
Disney+ is now live on most smart devices. If you haven't signed up for Disney+ yet, you can do that here.
What have you been watching on Disney+? Let us know your thoughts in the comments section.
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