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Disney Bounces on Mulan Streaming Gamble

Published 2020-09-08, 10:58 a/m
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By Christiana Sciaudone

Investing.com -- Walt Disney Company (NYSE:DIS) rose 2.2% as its streaming bet appears to be paying off.

Downloads of Disney's streaming app rose 68%, to 890,000, over the weekend, prompted by the online release of Mulan, a live-action remake of the 1998 movie, Bloomberg reported. Spending on the app was also higher, up by 193% to $12 million compared to a week earlier, Bloomberg reported, citing preliminary data from Sensor Tower. 

Disney+ costs $7 a month, and it costs an additional $30 to watch Mulan, which has generated criticism for filming in Xinjiang, where China has been accused of human rights abuses of more than 1 million Uighur Muslims, according to Hollywood Reporter. The star of the film, Chinese-American actress Liu Yifei, has also been the subject of controversy for commenting last year on social media that she supports the Hong Kong police force's crackdown on the pro-democracy movement.    

Deutsche Bank (DE:DBKGn) also upgraded the company and its streaming potential. Disney has "the most clear path to successfully transitioning its general entertainment programming and content production businesses into a globally scaled, vertically integrated streaming entertainment leader," Deutsche analysts Bryan Kraft wrote in a note, MarketWatch reported. 

Kraft cited impressive subscriber results, as well as the decision to shut down some of its traditional networks in international markets, including the UK. He raised his price target on the stock to $163 from $128.  

Offline, Walt Disney (NYSE:DIS) World reached its capacity limits over the Labor Day weekend for the first time since reopening, Forbes reported, citing Orlando's News 6 and the Associated Press. Disney's theme parks will reduce operating hours after this weekend.       

 

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