Macquarie senior media tech analyst Tim Nollen also maintained an outperform rating. And he noted that Disney has the essential assets to successfully transition to streaming, but it’s a multi-faceted effort.
Nollen wrote in a note that “Disney is making headway in its cost-saving and operating-efficiency efforts amid a deteriorating linear TV business, both structurally and cyclically.”
Disney’s subscriber losses have affected the company’s stock prices. But the company is committed to a long-term strategy of expanding the streaming services and adding content from Hulu to Disney+.