Disney+ dazzles in its debut; Walmart is ready for the holidays
Morning Business Outlook: Disney's new streaming service reaches 10 million subscribers in its first day, surpassing the company's estimate of 8 million by year’s end; Walmart is kicking off the holiday season with two early shopping events to gear up for Black Friday.
Disney+ mobile app has garnered millions of downloads and dollars through in-app purchases within its first two weeks, despite a bumpy launch due to high demand.
The mobile app, which debuted with an arsenal of marquee franchises including Marvel and Star Wars, has been downloaded 15.5 million times while also averaging 25.6 million sessions per day over the past week, according to research firm Apptopia.
The streaming service has also been ranking number one in the U.S. on the Google Play and iOS app stores, according to the data.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | WALT DISNEY COMPANY | 152.40 | +2.71 | +1.81% |
The service, which the "Mouse House" invested billions into, also accumulated $5 million through in-app purchases within the first 13 days, data from Apptopia shows.
WHY DISNEY+ OPTIMISTIC SUBSCRIBER FORECAST COULD BE PREMATURE
An introductory page on the Disney Plus website is displayed on a computer screen in Walpole, Mass., Wednesday, Nov. 13, 2019. (AP Photo/Steven Senne)
Disney said the $7 a month streaming service had 10 million subscribers on launch day.
The millions of subscribers are driven in part by Verizon customers who are eligible for a free year of the streaming service, according to Apptopia.
"Just look at the box office numbers for the Marvel movies and the new Star Wars movies," Adam Blacker of Apptopia told FOX Business. "The amazing price point, which will absolutely be increased at some point, combined with the ability for many people to get the service free through a deal with Verizon is a recipe for mass adoption."
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Despite Disney+ beating expectations so far, Apptopos' research suggests other heavy hitters in the streaming wars such as Netflix, Amazon Prime Video and HBO have been unaffected.
"Netflix, Amazon Prime Video and HBO Now have not been moved off their trend lines in the U.S.," said Blacker, who noted that as "Disney + grows in users and markets, that could change."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 314.22 | -1.33 | -0.42% |
| AMZN | AMAZON.COM INC. | 1,790.87 | +17.03 | +0.96% |
| HBO | n.a. | n.a. | n.a. | n.a. |
Prior to Disney's launch, analysts at Bank of America Merrill Lynch conducted a survey to get a better understanding of the competition streaming services will face.
Analysts say the survey of over 1,000 consumers indicated only a small number of subscribers suggested they would switch to Disney from Netflix, which continues to score well with increased usage, analysts say.