A DirecTV Blackout Triggers a Disney Profit Opportunity

DirecTV is trending for all the wrong reasons – and this blue chip stands to benefit... [Derby City Daily logo]( [Derby City Daily logo]( September 11, 2024 [A DirecTV Blackout Triggers a Disney Profit Opportunity]( By Andy Swan At LikeFolio, our social media machine doesn’t just crunch the numbers – it tells us in real time when chatter around specific brands and/or companies starts to spike so we can act fast when we see an opportunity. That’s exactly what we have for you today. A major competitor in the "live TV" streaming space is trending... and not in a good way. DirecTV triggered our high-volume detector this week when many of its 11 million subscribers found themselves in a blackout, unable to watch their favorite sporting events, including the opening weekend of college football, the U.S. Open, and the NFL’s Monday Night Football. Sports fans are a passionate bunch. Not being able to access their favorite teams face off left DirecTV customers in an uproar. I’d be mad, too. The problem is, The Walt Disney Co. (DIS) pulled the plug on its pay TV channels through DirecTV, including ESPN and FX, in opposition to DirecTV’s plans to create “skinnier” (aka cheaper) genre-specific bundles. Charter Communications’ (CHTR) Spectrum faced a similar battle with Disney last year – and I think you can guess who won. Charter eventually accepted Disney's request for higher fees. Our data tells us one thing: Consumers aren't loyal to a carrier. They just want to watch live sports. And that benefits Disney. The Disastrous Effects of DirecTV’s Outage – by the Numbers We can see the ripple effects of this DirecTV blackout playing out in real time. "Cancel direct tv” searches hit new highs over the weekend... Source: Google Trends While web visits ticked up for DirecTV streaming competitors: On a year over year basis, Disney+ web visits are currently up as much as 15%, while [Netflix (NFLX)]( traffic has gained by 10%, followed by ESPN+ at 5%. SPONSORED AD [ALERT: The “Alternative” AI Stock Set to Crush Nvidia in September?]( TradeSmith analyst Jason Bodner recommended Nvidia in February of 2017. The stock has since soared 4,000%. He then recommended another AI stock in 2023. It has outperformed Nvidia by 460% since Jason’s recommendation. But now, he’s revealing the name and ticker for his next AI stock pick. It’s an off-the-radar stock that’s just 1% the size of Nvidia right now. Yet he believes it’s set to power the whole world economy with AI. And it could crush all other AI stocks starting in September. Jason has agreed to reveal his new AI pick for free. For full details — down to the ticker symbol — go [here]( and check out his latest video bulletin. [Click here]( Disney’s Powerful Position Disney currently [holds the cards]( in the battle for eyeballs on TV screens, though it is facing legal hurdles in launching its proposed live sports streaming channel in partnership with Warner Bros Discovery (WBD) and Fox (FOX). If it goes ahead as planned, this new streaming venture [will be a complete game changer]( in the streaming wars. Disney recently posted its first-ever streaming profit ($47 million) for the third quarter, compared to a $512 million loss in the same period a year ago. Source: Statista The company's trifecta bundle, which includes Disney+, Hulu, and ESPN+, encompasses most of what consumers want to watch – live and on-demand. Disney has also proven it has pricing power, raising the prices for Disney+ and Hulu for both its ad-supported and ad-free tiers. [Increased ad spend]( in the back half of the year should also benefit Disney. Despite this streaming victory, DIS stock is struggling. At the time of this writing, shares are trading 22% lower from six months ago – and 37% lower than they were pre-pandemic. Source: TradingView This pullback could serve as a potential entry point for investors looking to snatch up the blue-chip stock – or as an accumulation opportunity for DIS shareholders. Especially considering the [continued consumer interest we’re seeing]( in Disney’s parks. LikeFolio data shows that Disney ticket, hotel, and trip searches are still trending higher year over year. Bottom line: With its streaming business finally turning a profit, we believe near-term volatility could be long-term gain for DIS investors. We’re in the thick of the dreaded seasonal trend – the “[September Slump]( Whether traders are sad to return from summer vacations, or firms are taking profits ahead of end-of-the-year statements, the fact is that even the best stocks historically underperform in the month of September. And that’s great news for LikeFolio members. Because for us, September has led us to some of our biggest winners – like the five hugely profitable trades that came out of our September 2022 MegaTrends report, including +257% on Nvidia (NVDA) and +114% on Meta Platforms (META). Rest assured: Our stock-picking algorithm is tuned to uncover the best bargains this month has to offer. Members, keep an eye on your inbox for the next big Opportunity Alert. And be sure to follow along with Derby City Daily as we spotlight more potential winners like DIS. Until next time, [Andy Swan's signature] [Andy Swan's signature] Andy Swan Founder, LikeFolio Discover More Free Insights from Derby City Daily Here's what you may have missed from Derby City Daily this week... ✓ [Robotaxi Mania: The Countdown to Tesla’s Next Breakout Moment]( ✓ [Embrace the September Slump with This AI-Powered Pick]( ✓ [The Earnings “Cheat Code” That Helps You Beat the Street]( © 2024 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. 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