The Next Generation of Walt Disney Co Profits Are in its Broad Content

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DIS stock - The Next Generation of Walt Disney Co Profits Are in its Broad Content

Walt Disney Co (NYSE:DIS) is already in great shape, and so is DIS stock. The studio entertainment division is chock-full with enough content to literally last a generation.

Marvel Studios leads the way, with superhero films that continue to gobble up box office, driving the price of Walt Disney stock higher. The studio followed the same track as the comics: introduce characters, put them together as The Avengers, and now the films mix-and-match with The Incredible Hulk joining Thor for the latter’s third film.

There are still literally thousands of untapped characters in the Marvel universe. While the TV series’ on Netflix, Inc. (NASDAQ:NFLX) don’t garner the same quality of reviews (but please, more “Jessica Jones”, now), there is still a following.

Over at Pixar, “Coco” is this season’s monster hit and yet another quality film, providing more fuel for Walt Disney stock. Pixar isn’t as prolific as Marvel, but it is still producing terrific movies that are very profitable and add to the bottom line for DIS stock.

LucasFilm is pumping out “Star Wars” content faster than the Millenium Falcon’s Kessel run, with “The Last Jedi” earning stellar early reviews. So pleased was DIS with the film that it has handed a fourth trilogy to director Rian Johnson. There’s a Han Solo spinoff movie in the works, and scads more content to come.

ESPN Isn’t a Pretty Picture

While fictional TV programming is doing fine, as far as ABC and Disney Channel, the sports network ESPN continues to struggle. There’s no clear fix here, although going with a la carte streaming programming for ESPN headed for the BamTech platform next year, we may see a migration away from ESPN as a traditional network. Alternatively, DIS may spin-off or sell the division.

The reason it can do this, despite the fact that ESPN accounts for a huge portion of the revenue fueling Disney stock, is the increasing likelihood that DIS will purchase Twenty-First Century Fox Inc (NASDAQ:FOXA). Not only will Disney inherit all the studio’s film properties — including “Alien”, “Avatar”, “Ice Age”, and “Kingsmen” — but it will get the Fox TV network, FX, and other channels.

Infographic: Licensed Merchandise Is a Billion-Dollar Business | Statista

Source: Statista

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Say “hello” to even more decades of content to exploit.

Magic in the  Kingdom

Theme parks and resorts continue to do exceptionally well and retain pricing power. With Disneyland’s “Star Wars Land” set to open, and an immersive “Star Wars” hotel, Disney is going all-in on both the legendary franchise and immersive entertainment.

Of course, there’s plenty of merchandising and ancillary products to support further revenue creation for DIS stock.

Finally, we have the much-touted Disney streaming service. I suspect that this service is going to become a must-own for parents all over the U.S., and possibly globally where the service is made available.

Hold DIS Stock for the Long-Term

Disney content has always been family friendly, and a core element of childhood entertainment here in America. When one includes all the film content mentioned above, as well as both Disney and Fox film and TV content, it very likely will be a slam-dunk decision for many.

I see Walt Disney stock as a very long-term hold. Buy it and forget about it, even at its current price.

Lawrence Meyers is the CEO of PDL Capital, a specialty lender focusing on consumer finance and is the Manager of The Liberty Portfolio at www.thelibertyportfolio.com. He owns DIS stock. He has 22 years’ experience in the stock market, and has written more than 1,600 articles on investing. Lawrence Meyers can be reached at TheLibertyPortfolio@gmail.com.


Article printed from InvestorPlace Media, https://investorplace.com/2017/12/the-next-generation-of-disney-profits-are-looming/.

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