Activist investor Dan Loeb is calling on the Walt Disney Co. to do more to leverage its leadership position in sports, general entertainment and blockbuster franchises in order to unlock the full potential of its streaming services.
Loeb said in a letter to investors in his hedge fund Third Point on Friday that his optimistic view of Disney’s streaming service has proved to be correct, with the division now generating over $15 billion in annual revenue and in turn helping drive the company’s stock up 70% since May 2020. The company has also doubled its medium-term Disney+ content investment while maintaining its profitability guidance due to the platform’s early success, he noted.
Experiments with premier access to the release of "Black Widow," for example, for an additional fee, and access to the release of films like Pixar’s "Luca" and "Soul" have been instrumental in that success, Loeb said.
“While the progress thus far has been commendable, even more can be done to realize Disney’s full potential in streaming,” Loeb said in letter.