Disney (DIS) stock price is falling due to the poor performance of its “Onward” movie. COVID-19 is causing disruptions in the entertainment industry apparently. Meanwhile, Disney+ is launching in Europe.The Walt Disney Company (NYSE: DIS) stock price has dropped since the premiere of Pixar’s new feature-length “Onward”. Sources say that this is because of falling demand from the theaters across the United States and beyond. On Friday Disney stock fell to .98 (-9.43%) at the market’s close. Today, the stock is also in teh red. At the moment of writing, it is 0.55% down and is trading at .51.The stay-at-home restrictions instituted by governments have a lot to do with this. Theaters across the United States and in other Countries are empty. Naturally, ticket sales have dropped and this
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Disney (DIS) stock price is falling due to the poor performance of its “Onward” movie. COVID-19 is causing disruptions in the entertainment industry apparently. Meanwhile, Disney+ is launching in Europe.
The Walt Disney Company (NYSE: DIS) stock price has dropped since the premiere of Pixar’s new feature-length “Onward”. Sources say that this is because of falling demand from the theaters across the United States and beyond. On Friday Disney stock fell to $85.98 (-9.43%) at the market’s close. Today, the stock is also in teh red. At the moment of writing, it is 0.55% down and is trading at $85.51.
The stay-at-home restrictions instituted by governments have a lot to do with this. Theaters across the United States and in other Countries are empty. Naturally, ticket sales have dropped and this will send shockwaves across the movie industry.
Before the COVID-19 situation, theater prices have been on the decline for the past decade or so. The creation of digital content aggregators such as Disney +, Netflix Inc (NASDAQ: NFLX) and Amazon Prime are competitors to the theaters.
People have become dependent on digital-only services that are mostly subscription-based rather than pay-per-view.
As such, “Onward” will go digital. It is expected to be released on Disney + at no extra cost to subscribers. It also is a good thing for subscribers as the content is king and emperor at this time.
Disney (DIS) Stock Price to be Affected by Decline in Digital Rentals
There is a seeming decline in digital rentals as $20 offerings seem to be expensive. As many consider the volume of content delivered, it leaves much to be desired for those who intend to spend extra time watching digital content.
It appears that no industry isn’t immune to COVID-19. Though theaters got shuttered over the past few weeks in America, the switch to digital media may offer respite to Disney. Disney’s new streaming service Disney + and other members of Disney’s digital entertainment are offering respite to the stay-at-home restrictions.
Sources also say that the launch of Disney + in Europe will be successful but with a few hitches. Disney + in the United Kingdom will be launched with a lower quality streaming than usual. The higher than normal demand has a lot to do with this. France is also operating under similar conditions. The service will be delayed until April 7th Sources say. This will allow more people to use the service at this time.
Once the situation gets better, there will be a definite shift from theater outings to streaming as an alternative. This is also sure to shake the entertainment industry as well. Digital streaming is likely the winner in this contest.
As the world is preparing for a recession, consumers are already titling their preferences to suit the new situation. A higher rise in subscriptions across digital platforms has been reportedly noticed as more people stay at home.
Disruption in the Entertainment Industry Is Likely
The ripple effects of this cannot be ignored. Sources say that Disney has moved release dates of other feature films forward while the release of “Onward” may also move forward.
While disruptions such as this often occur in businesses from time-to-time, it is the adaptation to the new normal that will save the day. Disney has proved this with their Digital family of services. They will weather the storm. Even as Disney is reportedly expected to borrow an additional $6 billion in the debt markets.
Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.