Should Disney Exit the Streaming Business?

[hunter]

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...one Wall Street analyst, Wells Fargo’s Steven Cahall, is asking a provocative question in a research note released Sunday: What if the key to unlocking Disney’s stock price is exiting the streaming business?

Cahall suggests that if Disney returned “to its old biz model of producing vs. distributing,” it could add 40 percent to the company’s share price, and tighten management’s focus on creating and managing intellectual property, as well as its lucrative experiences business.

The Wells Fargo analyst that, if Sony is getting $1 billion annually from Netflix for its pay-1 movie output deal, Disney could be in line for nearly $4 billion. When pay-2 and Disney’s unmatched library is factored in, licensing revenues could hit $15 billion.

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https://www.hollywoodreporter.com/business/business-news/should-disney-get-out-streaming-business-disney-plus-1236646511/

My wife and I briefly subscribed to Disney streaming but it quickly became apparent we wouldn't be watching it frequently enough to justify the cost. The same was true of Paramount.

The diversity of shows on Netflix can't be beat.

I think consumer "lock-in" on streaming services isn't a viable strategy. Most consumers are not going to spend a few hundred dollars subscribing to every streaming service.