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Disney (DIS) Delays Avatar Sequels, Sets New Star Wars Film
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The Walt Disney Company (DIS - Free Report) announced some changes to its upcoming movie slate. Per an article by Reuters, a new Star Wars film is expected to hit theaters in 2026. The studio also moved up the release date of a Deadpool sequel starring Ryan Reynolds to May 2024, instead of Nov 2024.
Viewers of James Cameron's Avatar franchise will have to wait longer to enjoy the next three instalments. DIS postponed the release dates of Avatar 3, Avatar 4 and Avatar 5 by a year each, citing production challenges. The films are now set to debut in December 2025, December 2029 and December 2031, respectively.
Disney also delayed two Marvel films that have been affected by the ongoing strike by Hollywood writers. It moved Thunderbolts from July 2024 to December 2024. Blade, starring Mahershala Ali, was postponed by five months to February 2025.
Disney Leveraging on Strong Content to Boost Prospects
Disney benefits from a strong content portfolio and Disney+ — available in more than 150 countries outside the United States and Canada. The streaming service offers nearly 700 movies and 11,700 episodes of television shows from brands such as Disney, Pixar, Marvel, Star Wars, National Geographic and Disney+ originals.
Disney+, as of Apr 1, 2023, witnessed modest growth in core subscribers, with more than 600,000 net additions. Core international subscribers increased by close to 1 million.
Domestic average revenues per user increased 20% sequentially, reflecting strong subscription revenue growth. The company also plans to increase the price of its ad-free tier by the end of this year.
Following the footsteps of Netflix (NFLX - Free Report) , Disney started offering an ad-supported tier on Dec 8, 2022. It has added more than 1,000 advertisers in the past year and has 5,000 advertisers across its streaming platforms. Disney intends to launch an ad tier on Disney+ in Europe by the end of 2023.
What Awaits Disney in the Rest of 2023?
Disney’s shares have gained 8% year to date compared with the Zacks Media Conglomerates industry’s increase of 6.7% during the same time frame.
However, it has underperformed its peers like Netflix, Warner Bros. Discovery (WBD - Free Report) and Liberty Media (FWONA - Free Report) . Shares of Netflix, Warner Bros. and Liberty Media have surged 47.8%, 45.5% and 30% year to date, respectively.
A strong lineup of upcoming movies, including, Star Wars: Ahsoka, Indiana Jones and the Dial of Destiny, Elemental and Haunted Mansion, bodes well for the Media and Entertainment Distribution segment.
This Zacks Rank #3 (Hold) company expects fiscal 2023 revenues and operating income to grow in the high single-digit percentage range. It expects weakness in Disney+’s domestic subscriber base to continue in the third quarter but anticipates core subscriber growth to rebound in the fourth quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $22.69 billion, indicating a 5.53% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter 2023 earnings is pegged at $1.06 per share, unchanged in the past 30 days.
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Disney (DIS) Delays Avatar Sequels, Sets New Star Wars Film
The Walt Disney Company (DIS - Free Report) announced some changes to its upcoming movie slate. Per an article by Reuters, a new Star Wars film is expected to hit theaters in 2026. The studio also moved up the release date of a Deadpool sequel starring Ryan Reynolds to May 2024, instead of Nov 2024.
Viewers of James Cameron's Avatar franchise will have to wait longer to enjoy the next three instalments. DIS postponed the release dates of Avatar 3, Avatar 4 and Avatar 5 by a year each, citing production challenges. The films are now set to debut in December 2025, December 2029 and December 2031, respectively.
Disney also delayed two Marvel films that have been affected by the ongoing strike by Hollywood writers. It moved Thunderbolts from July 2024 to December 2024. Blade, starring Mahershala Ali, was postponed by five months to February 2025.
Disney Leveraging on Strong Content to Boost Prospects
Disney benefits from a strong content portfolio and Disney+ — available in more than 150 countries outside the United States and Canada. The streaming service offers nearly 700 movies and 11,700 episodes of television shows from brands such as Disney, Pixar, Marvel, Star Wars, National Geographic and Disney+ originals.
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Disney+, as of Apr 1, 2023, witnessed modest growth in core subscribers, with more than 600,000 net additions. Core international subscribers increased by close to 1 million.
Domestic average revenues per user increased 20% sequentially, reflecting strong subscription revenue growth. The company also plans to increase the price of its ad-free tier by the end of this year.
Following the footsteps of Netflix (NFLX - Free Report) , Disney started offering an ad-supported tier on Dec 8, 2022. It has added more than 1,000 advertisers in the past year and has 5,000 advertisers across its streaming platforms. Disney intends to launch an ad tier on Disney+ in Europe by the end of 2023.
What Awaits Disney in the Rest of 2023?
Disney’s shares have gained 8% year to date compared with the Zacks Media Conglomerates industry’s increase of 6.7% during the same time frame.
However, it has underperformed its peers like Netflix, Warner Bros. Discovery (WBD - Free Report) and Liberty Media (FWONA - Free Report) . Shares of Netflix, Warner Bros. and Liberty Media have surged 47.8%, 45.5% and 30% year to date, respectively.
A strong lineup of upcoming movies, including, Star Wars: Ahsoka, Indiana Jones and the Dial of Destiny, Elemental and Haunted Mansion, bodes well for the Media and Entertainment Distribution segment.
This Zacks Rank #3 (Hold) company expects fiscal 2023 revenues and operating income to grow in the high single-digit percentage range. It expects weakness in Disney+’s domestic subscriber base to continue in the third quarter but anticipates core subscriber growth to rebound in the fourth quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $22.69 billion, indicating a 5.53% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter 2023 earnings is pegged at $1.06 per share, unchanged in the past 30 days.