Disney surged +14% on Friday morning on the heels of an investor day that showed a booming streaming business.
Disney+ subscribers are now reportedly now at 86.8 million, or up +19% from just two months ago.
Meanwhile, the company unveiled new ambitions to hit 300 to 350 million paid subscriptions in 2024 across all of its streaming services (which include Hulu and ESPN+).
To drive that growth, the company will be investing heavily in original content, and plans to launch over 100 original titles every year.
We're optimistic on this approach, and see the new targets as signposts that Disney has doubled down on its franchise-driven DTC strategy that has so far blown past even the most optimistic of expectations.
The company also announced a $1 price increase for Disney+ to begin early next year, which would bring its lowest subscription price to $8 - still significantly beneath Netflix's starting subscription price of $14.
We believe this reflects the latent pricing power inherent in Disney+, which we believe should only grow as it expands its slate of original content franchises.