Walt Disney Co. (NYSE:DIS) has seen its studio business get off to a strong start in 2018. Star Wars: The Last Jedi was received with mixed reactions by audiences but it scooped in over $1.3 billion worldwide. More impressively was Black Panther, the Marvel property which notched over $650 million in the domestic box office and also over $1.3 billion globally.
Disney still has plenty in the tank to make this a banner year for its studio. Avengers: Infinity War is expected to easily pull in over $1 billion worldwide, and it is set to release another Star Wars property this spring. The company is also set to compete directly with Netflix, Inc. as it prepares to launch its own streaming service in 2019.
On April 12 Disney launched ESPN+, which will give subscribers access to live and on-demand events from the MLB, NHL, MLS, and other worldwide sporting events. ESPN has said that it wants this service to cater to sports fans that are often left out by its mainstream broadcasting, which sees most exposure go to the NFL and NBA. Jimmy Pitaro, president at ESPN, said this represented “the first step down the path of digital direct-to-consumer for the Walt Disney Co.”
Streaming services have been a cause for anxiety for entities that rely on traditional media like Disney. Investors will be watching closely as it prepares to unveil its full direct-to-consumer digital offering next year.
