Someone has to pay for that content – and someone else you, the customer. If Disney wants to achieve its forecast of hitting profits in fiscal 2024, it will have to raise prices. It said it would do so in March. After that, it will have to be done again. “In general, streaming plays a major role in consumer wallets,” Bernie McTernan, a senior analyst at Rosenblatt Securities, told CNN Business. It’s not Disney (DIS) raising prices. Netflix (NFLX) has already announced a price increase, which other competitors will have to do if they want to produce content that Disney has shown while still in a stable business. Take HPO Max, for example. WarnerMedia, a service provider from CNN Parents, announced earlier this month that it would stream movies on HBO Max on the same day it was dropped in theaters. Whether this will become a norm or a quick fix during an outbreak is yet to be seen. But if this becomes a permanent strategy, consumers will have their subscription prices rise over the next few years. Creating a big blockbuster like “Wonder Woman 1984” is not cheap. MCD Ternan pointed out that publishing the company’s content would also lead to a streaming arms race. “Disney’s increasing its content budget is a big deal for the entire industry, including Netflix,” he said. Netflix has become a market leader not only in the first place but also in creating great content at an affordable monthly price. But burning money can not last forever, which is why the company announced in October that it would raise prices over the next few months if it wants to maintain its throne as king of streaming. Netflix should now attract its content to customers with multiple services to choose from. “The pressure on Netflix to compete with content is enormous,” Trip Miller, Cullen Capital Partners’ Disney investor and managing partner, told CNN Business. “Disney’s cross-generation legacy content is not Netflix.” Miller added that the epidemic “may have accelerated the adoption of subscribers so far beyond expectations”, but he hopes it will continue even after the epidemic is over. “Streaming is not a. Debit. It’s here to stay,” he said. “For consumers, the cost of doing business with Disney is increasing, but in return, the amount of content they receive is increasing.” Although streaming prices will continue to rise, many consumers will pay. But by confiscating money from other expenses like cable they can rework their entertainment budgets. It is an exchange for companies such as Disney, WarnerMedia, Comcast (CCZ) and ViacomKBS (VIACA), which own or license content for television networks. “As media, companies place more and more excellent content on their streaming services, which allows consumers to constantly evaluate whether or not they need pay-TV,” McDernan said. Disney “saw the potential of opening the consumer wallet with the introduction of Disney +,” McDernan added. Now, they think that this high investment in content will enable them to take a greater share of that wallet. ”
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