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Walt Disney (NYSE:DIS) Considers Amazon-Type Membership as Retail Investors Warm Up to Stock
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Walt Disney (NYSE:DIS) Considers Amazon-Type Membership as Retail Investors Warm Up to Stock

Story Highlights

Disney is looking at offering a package similar to Amazon’s successful Prime membership program. If Disney goes ahead with the membership program, then it might help drive customer loyalty and boost revenues.

Amazon’s (AMZN) Prime membership program has inspired Walt Disney (DIS). The House of Mouse is considering introducing a membership package modeled around the Amazon Prime program. TipRanks’ insights show retail investors are excited about DIS stock.

Disney runs a broadly diversified business. In addition to producing movies, the company also operates resorts and theme parks. Additionally, it offers a Netflix-like video streaming service under the Disney+ brand.

Disney’s Membership Program to Bundle Offerings

According to a Wall Street Journal report citing people with knowledge of the plan, Disney is looking at launching a membership program that would bundle its various offerings. The package would include offerings across resorts, theme parks, and streaming services. 

Amazon’s Prime membership comes with an annual or monthly fee, which generates subscription revenue for the company. Disney’s membership program may also open an additional revenue stream. The company aims to make its Disney+ streaming brand profitable by 2024, according to a New York Times report.

A move in that direction would see Disney join the ranks of Amazon, Walmart (WMT), and Apple (AAPL). These companies have used their membership programs to build customer loyalty. A similar membership program might also help Disney to learn more about its customers and use the insights to drive sales in other ways, according to the report.

Is Disney Stock Expected to Rise?

Disney stock has declined about 28% year-to-date. Wall Street is highly bullish on the stock. According to TipRanks’ analyst rating consensus, DIS stock is a Strong Buy based on 16 Buys and three Holds. The average Disney stock price prediction of $139.28 implies over 24.3% upside potential.

DIS stock is a favorite of retail investors. TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Positive on Disney. In the past 30 days, 2.6% of retail portfolios tracked by TipRanks increased their exposure to DIS stock.

Final Thoughts

If Disney goes ahead and debuts its membership program, it may not only benefit from building loyal customers but also unlock a new revenue source. The pullback in DIS stock might appeal to investors looking to buy the dip.

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