Exciting news for Disney (DIS) fans, particularly those fond of sports as well. While the loss of Venu has been a bit of a blow, Disney is far from getting out of the sports streaming market. Now, ESPN will incorporate “user-generated content” in its upcoming flagship product once it goes live later this year. Investors did not much like the idea, though, and shares slipped over 1.5% in Thursday afternoon’s trading.
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The details, not surprisingly, are still being kept quiet. But apparently ESPN will look to its audiences to chip in some content at some point, in a bid to better connect with the Gen Alpha market, reports note. Indeed, Disney has reportedly been looking at YouTube and its impact on streaming operations for some kind of guideline on how to bring in user content to the platform.
The service, which does not have a name yet either, does have a projected price tag, reports note; ESPN is looking to charge either $25 per month, or $30 per month for the full streaming service. The extra cash will apparently open up new options, including several “digital add-ons” as well as the full slate of linear programming. Given that the Disney Bundle Trio Premium, which includes Disney+ and Hulu without ads and ESPN with ads, runs $26.99 per month, ESPN may be hindering its own efforts early on.
Another Court Battle
Meanwhile, it seems Disney is likely going back to court, reports note, as investors are taking aim at Disney itself. Reports note that judges did not dismiss a suit against Disney which alleged that then-CEO Bob Chapek kept costs about Disney+ quiet, suggesting instead it would be “profitable by 2024.”
Further, U.S. District Judge Consuelo Marshall noted that Disney may have “engaged in deceptive conduct” by suggesting that its Disney+ service could ultimately reach the same scale as rival Netflix (NFLX). This, in turn, might bring a whole lot of new information about Disney’s streaming ambitions to the fore and tell us a lot about what is yet to come.
Is Disney Stock a Buy or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 15 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 2.61% rally in its share price over the past year, the average DIS price target of $129.67 per share implies 18.44% upside potential.
