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Why the coronavirus vaccine news is good for Disney

Disney has shifted its business to focus more on streaming. But recent COVID-19 vaccine news could be good for the company, too.

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Photo of the Walt Disney Co. logo.

In this Aug. 8, 2017, file photo, the Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange.

Richard Drew, Associated Press

The recent round of coronavirus vaccine news could be a good sign for the Walt Disney Company, especially after the vaccine is distributed.

What’s going on?

Pfizer and BioNTech announced Monday that their coronavirus vaccine could be 95% effective in defeating the novel coronavirus. Similarly, Moderna announced a 94.5% efficacy rate for its vaccine.

The news sent the stock market into a frenzy. Tech stocks — which have been successful in the “stay at home” economy — tanked due to the news. But companies that relied on consumer spending saw a rise.

Why Disney wins

Per The Motley Fool, Disney might be one of the biggest winners in a post-pandemic world.

Disney has made a large pivot toward streaming content. In October, Disney said it will turn its media business into a single organization that will distribute content for ad sales and Disney Plus — a sign the company is making streaming a priority, which I wrote about for the Deseret News.

“Given the incredible success of Disney+ and our plans to accelerate our direct-to-consumer business, we are strategically positioning our company to more effectively support our growth strategy and increase shareholder value,” Disney CEO Bob Chapek said in a statement to The New York Times. “Managing content creation distinct from distribution will allow us to be more effective and nimble in making the content consumers want most, delivered in the way they prefer to consume it.”

But there will be huge demand for people to visit Disneyland and Walt Disney World after the vaccine is distributed, according to The Motley Fool.

  • “Disney’s theme parks are likely to see record attendance when the pandemic is over, and the same is true for the remainder of its experiences business, as well as things like movies and sporting events.
  • “That all adds up to a company that’s primed to thrive when the crisis ends. While no one knows when that will be for sure, Disney’s business could be firing on all cylinders as soon as next summer. If that happens, the stock seems destined to follow suit.”