Markets
DIS

Disney+ Could See 'Major Acceleration' From Season 2 of 'The Mandalorian'

Walt Disney's (NYSE: DIS) entry into the streaming landscape, Disney+, is already years ahead of schedule in terms of subscriber growth, but that could be just the beginning. The platform might be on the verge of another catalyst with the upcoming release of season two of its smash hit The Mandalorian, which premieres on Friday.

The company announced during its third-quarter conference call that as of Aug. 4, Disney+ had surpassed 60.5 million paid global subscribers, a threshold it didn't expect to crest until 2024. Much of its early success has been attributed to the popularity and critical success of The Mandalorian, the latest entry in the Star Wars universe.

Three heavily armed people facing an unknown foe.

(Left to right) Gina Carano as Cara Dune, Pedro Pascal as the Mandalorian, and Carl Weathers as Greef Karga in season two of the Disney+ original, The Mandalorian. Image source: Disney+.

The Mandalorian is a "hugely popular and a critical show," according to Bank of America analyst Jessica Reif Ehrlich, helping drive viewer demand and subscriber growth. CFRA Research analyst Tuna Amobi echoed that opinion, saying he expects the coming season to be another critical and commercial success. "It's really hard to know how much of an impact any given show can have on subscriber growth, but ... I think it's fair to say we're going to see major acceleration in subscribers," he said.

As part of its initial launch last year, the service partnered with Verizon Communications, which offered a year of Disney+ free with certain unlimited data plans. The first of those plans is set to expire on Nov. 12, the one-year anniversary of the debut of Disney+. Rosenblatt Securities analyst Bernie McTernan believes the company is operating from a position of strength. "We think having The Mandalorian season two coming out before the first batch of the Verizon promos expire will be a positive," he said.

The company recently announced a strategic reorganization, with a greater focus on streaming, citing the rapid success of Disney+.

10 stocks we like better than Walt Disney
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Walt Disney wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of October 20, 2020

Danny Vena owns shares of Walt Disney and has the following options: long January 2021 $85 calls on Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. The Motley Fool recommends Verizon Communications and recommends the following options: long January 2021 $60 calls on Walt Disney. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

DIS VZ

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More