MORGAN STANLEY: Marvel is set to play ‘perhaps the most critical role’ in Disney’s fight against other streaming platforms

  • Marvel, the superhero franchise behind the Avengers, could play “perhaps the most critical role” in Disney’s upcoming streaming service, according to new a report from Morgan Stanley.
  • The expected roll out of superhero TV shows on Disney Plus will help keep consumers coming back to the platform between movie releases, analysts from the bank said.
  • Marvel released key details about the fourth phase of its cinematic universe at Comic-Con over the weekend.
  • Watch Disney trade live.

Disney‘s success against its soon-to-be streaming rival Netflix could depend entirely on the next phase of the Marvel Universe.

The superhero franchise could be the most important component to Disney’s new streaming platform, Disney Plus, a team of analysts at Morgan Stanley led by Benjamin Swinburne said in note to clients on Tuesday.

“Today, it is clear that Marvel plays a critical role and perhaps the most critical role in building the service’s value for consumers,” they said.

Initially, Disney was unclear whether it planned to include Marvel content on Disney Plus. Now, it appears that Marvel shows and movies are going to be front and center on Disney Plus in addition to the franchise’s blockbuster theatrical releases.

Markets Insider is looking for a panel of millennial investors. If you’re active in the markets, CLICK HERE to sign up.

And business is booming. Marvel’s “Avengers: Endgame” surpassed James Cameron’s “Avatar” over the weekend to become the highest grossing film of all time with $US2.79 billion ticket sales.

With the acquisition of 21st Century Fox assets, Disney now owns between 30% and 40% of the domestic box office, and Marvel alone is responsible for 10% to 15% of that revenue, according to Morgan Stanley.

“This proves that Marvel has broken beyond fanboy demand to mass market, something that will be important to Disney Plus delivering its ambitious targets,” said Morgan Stanley.

The firm estimates Disney could accumulate more than 130 million subscribers by 2024 across all of its streaming platforms, with Disney Plus leading the way.

Disney revealed more details about the new shows and movies expected to be included in Marvel’s Phase 4 at Comic-Con over the weekend. The Marvel franchise plans to roll out five series on Disney Plus starting in Fall 2020 including “The Falcon and the Winter Solider” and “WandaVision.”

“In the debate of quality vs. volume that dominates the conversation around streaming plans particularly given Netflix’s tonnage, these series should help lock in Marvel fans between theatrical releases,” said Morgan Stanley.

The rapid race among Media companies to secure and supply premium content includes Disney, and Morgan Stanley thinks that could be key factor in the company’s success.

“For all of the complexities of Disney’s business model transition and the stock’s investment case, the durability of its content underpins everything,” the firm said.

Disney is up roughly 29% year-to-date.

Now read more markets coverage from Markets Insider and Business Insider:

UBS reveals the combined company that could challenge Disney and Netflix in the ‘content arms race’

Elizabeth Warren just issued a stark warning around a ‘coming economic crash’ – and outlined a plan to avoid it

Meet the 2 emerging power players at Netflix who are leading its early marketing work with brands

Disney shares