Theme park operator and entertainment behemoth Disney (NYSE:DIS) was trending in early afternoon trading following the company’s announcement yesterday that it signed a content deal with Korean pop (K-pop) band BTS. Inking an agreement with the ultra-popular group’s label Hybe Co., Disney will feature BTS in two exclusive shows on its streaming services. DIS stock is currently down 1.3%.
In a request for comment by Yahoo! Finance, Disney confirmed that in partnership with Hybe, “the two companies will produce five streaming titles, including three exclusive projects (docuseries, concert film and reality show) that feature BTS or BTS members.”
Further, Yahoo! Finance noted the “titles will air on Disney+ in all Asian markets and all international markets where the service is available. The exception being the U.S., as Disney said it does not yet know whether the series’ will end up on Disney+ or Hulu.”
Interestingly, BTS announced last month that the band will go on hiatus to focus more on solo projects. However, the group emphasized the disclosure did not equate to a breakup, and they will make music together again at some point.
The somewhat vague implications behind the hiatus is apropos for DIS stock, with the underlying company struggling to navigate a complex consumer economy.
DIS Stock Teeters Between Intentions and Results
The motivation behind Disney’s latest maneuver is clear. On the economic front, the Magic Kingdom aims to widen its international appeal. According to Disney’s APAC (Asia-Pacific) head of content Jessica Kam-Engle, “This collaboration represents our creative ambition – to work with iconic content creators and top stars in Asia Pacific so their talent can be enjoyed by mainstream audiences in multiple ways.”
Further, the executive noted that, “We believe these new titles will captivate consumers worldwide and look forward to introducing more music content on our service.”
Disney has enjoyed success with music-inspired content, including the Tony award-winning musical Hamilton, which helped spike Disney+ subscriptions. As well, the company released projects from a range of artists including Beyoncé, Billie Eilish and the Beatles.
Another fact that should not be dismissed is that through the early afternoon hours of July 13, DIS stock finds itself down about 41% year-to-date. Therefore, Disney needs winners and it remains to be seen if BTS is just that: a winner.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
