Disney’s decision to get heavily into the streaming business is already paying off as Barclays has valued its “Disney Streaming Services” company, which includes Hulu, Disney+ and ESPN+, at around $107 billion to $108 billion.
Barclays came to this estimate by calculating an enterprise value for the core business of Disney, and then subtracting that estimate from the company’s current total enterprise value of roughly $320 billion. Enterprise value is a measure that combines market cap with short- and long-term debt.
“Just 6 weeks into launch, Disney is already pricing in a streaming business worth $108bn, 69% of Netflix’s enterprise value which has taken 13 years to get here,” Barclays said.
Disney has previously said they are predicting that Disney+ will have 60 million to 90 million subscribers globally by the end of its 2024 fiscal year. And current estimates are saying that Disney+ will hit 25 million subscribers by the end of this quarter.
Earlier this year, Disney was able to gain full control of Hulu, following its purchase of 20th Century Fox and making a deal with NBC Universal to buy out their share of the streaming service.
Barclays still feel Disney may need to sign distribution deals with internet service providers, to create bundled products of streaming products and internet service, which would also provide a boost to broadband companies.
This news continues to show why Disney is getting so heavily invested into streaming and view it as an important way of distributing their content globally, as people move away from traditional TV providers and stream their content directly.
Are you subscribed to Disney+ and Hulu?