Analyst Says Walt Disney (DIS) Needs ‘Tonnage’ of Content to Become the ‘Go-To’ Media App

Walt Disney (DIS) is currently in the news following the success of its key titles, including ‘Lilo & Stitch,’ and reports of the company initiating layoffs. The stock is up 20% over the past month. Jason Bazinet, Media & Entertainment Analyst at Citigroup, recently talked about Disney during a program on CNBC.

The analyst said he’s “nervous” about the ads market when it comes to Walt Disney Co (NYSE:DIS), but he is not worried about the theme parks business even in a recession scenario.

“I have a slight disagreement with the company in terms of what’s going on. I think what Disney needs to do is pivot a little bit more and create more content, even if it’s not the same quality of content that Disney is accustomed to making. Our sort of thesis is that Disney did a great job sort of creating a few pieces of high-quality content, which makes perfect sense as a film studio. It makes perfect sense if you’re going to import IP into the parks that worked for Disney in the past. In the future, what consumers are looking for is a pay TV substitute, and I just think Disney needs more tonnage of content so it’s viewed as sort of the go-to app, which they don’t really have today. It’s sort of stuck in the middle.”

Photo by Kaleidico on Unsplash

Mairs & Power Balanced Fund stated the following regarding The Walt Disney Company (NYSE:DIS) in its Q1 2025 investor letter:

“The Walt Disney Company (NYSE:DIS) also underperformed both the market and the sector as expectations for its economically sensitive parks business decline, although the company’s underlying profitability has improved. Also, within the sector we have historically not held any of the telecom players who have had a more difficult time developing a sustainable competitive advantage.”

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Disclosure: None. This article is originally published at Insider Monkey.