Disney Stock Gains after the Entertainment Company Wins Big in Golden Globe

Disney Stock

Disney Stock (NYSE:DIS)

The Walt Disney Company (NYSE:DIS) received nine Golden Globe Awards at the 2023’s Golden Globe. Their film The Banshees of Inisherin won the Academy Award for Best Picture, Musical, or Comedy. Among the competitors were Glass Onion: A Knives Out Mystery from Netflix (NASDAQ:NFLX) and Babylon from Paramount Pictures, a subsidiary of Paramount Global (NASDAQ:PARA).

Colin Farrell was named Best Actor in a Musical or Comedy Motion Picture for his work in “The Banshees of Inisherin.” Martin McDonagh took home the award for best screenplay.

Abbott Elementary, which airs on Disney-owned ABC/20th Television, won the Best Television Series (Musical/Comedy) award.

Quinta Brunson was awarded Best Actress in a Musical or Comedy Television Series. In contrast, Tyler James Williams received the award for Best Actor in a Supporting Role in a Musical, Comedy, or Drama Television Series.

Angela Bassett accepted the award for “Best Actress in a Supporting Role in Any Motion Picture.” Jeremy Allen White was awarded Best Actor in a Television Series (Musical/Comedy). In contrast, Amanda Seyfried received the award for Best Actress in a Limited Series, Anthology Series, or Motion Picture Made for Television. The “Best Performance by an Actor in a Television Series (Musical/Comedy)” award went to Jeremy Allen White.

However, Disney’s Avatar: The Way of Water did not win the award for the best dramatic feature. Instead, The Fabelmans, produced by Universal Pictures and owned by Comcast, received this award (NASDAQ:CMCSA). Steven Spielberg, the winner of the Academy Award for Best Director of a Motion Picture, directed the film.

Even though Netflix won three awards at the 2018 Golden Globes, it was hardly a major event for the streaming company. Guillermo del Toro made history by winning the Golden Globe for “Best Animated Feature” for “Pinocchio.” He was the first Latino to accomplish this. Evan Peters won for his work in Monster: The Jeffrey Dahmer Story, and Julia Garner won for her work in Ozark. Julia Garner was named Best Supporting Actress in Television for her work in Ozark (Best Performance by an Actor, Limited Series, Anthology Series, or Motion Picture made for Television).

Prospects Benefit From Disney’s Extensive Library of Entertaining Material

Disney and other media companies such as Comcast and Paramount are still feeling the effects of COVID-19, and they now face increased competition in the already crowded and still Netflix-dominated streaming market.

Disney has a lot to offer in terms of entertainment, as evidenced by the recent Golden Globe awards. Despite not being nominated for any awards, Avatar: The Way of Water was one of 2022’s highest-grossing films. Because these new films will soon be available on Disney’s streaming service, Disney+, the service’s user base is expected to grow dramatically. More than 12 million new Disney+ subscribers worldwide were registered during the fourth quarter of the fiscal year 2022.

In the final three months of the fiscal year 2022, Disney’s direct-to-consumer subsidiary reported a $1.5 billion operational deficit. The increase over last year is 100 percent. This is most likely due to macroeconomic factors such as inflation, which increased the company’s production costs, and currency exchange effects, which reduced Disney+’s average revenue per user (ARPU) by 5%.

However, Disney is making significant efforts to cut costs. To continue releasing high-impact, engaging content, it must cut unnecessary marketing costs and improve its content slate and distribution strategy. Disney+ is expected to turn a profit by 2024. Disney stock had a tough 2022, falling by 44%. But things are improving, as Disney stock has already gained more than 12% year-to-date.

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About the author: Stephanie Bedard-Chateauneuf has over four years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.