Disney’s (NYSE: DIS) announcement on Friday that it will introduce an ad-supported subscription option for its Disney+ streaming service at a lower cost than its ad-free subscription is sure to have an impact. on media-focused ETFs such as the Invesco Dynamic Media ETF (PBS)the Invesco S&P 500 Equal Weight Communications Services ETF (EWCO)and the Invesco Dynamic Leisure and Entertainment ETF (PEJ)all of whom have stakes in the media giant.
Although launch date and pricing details will be announced later, Disney+ is set to bring this new, cheaper subscription tier to US customers later this year, with plans to expand internationally in 2023. .
“Expanding access to Disney+ to a wider audience at a lower price is a win for everyone – consumers, advertisers and our storytellers,” said Kareem Daniel, President of Disney Media and Entertainment Distribution. . “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience and our storytellers will be able to share their amazing work with more fans and families. »
The ad-supported offering is part of Disney’s plan to gain between 230 million and 260 million Disney+ subscribers by fiscal year 2024.
PBS seeks to track the investment results of the Dynamic Media Intellidex Index. The fund will generally invest at least 90% of its total assets in the securities that make up the underlying index. At the heart of the index is a conglomeration of US media companies. These companies are primarily engaged in the development, production, sale and distribution of goods or services used in the media industry.
EWCO, meanwhile, seeks to track the investment results of the S&P 500® Equal Weight Communication Services Plus Index. The fund will generally invest at least 90% of its total assets in the securities that make up the underlying index.
The underlying index is composed of all components of the S&P 500 Communication Services Plus Index, an index that contains the common stocks of all companies included in the S&P 500® Index that are classified as members of the services sector communications, as defined by the Global Industry Classification Standard (GICS). The fund uses a mix of allocation styles, but operates primarily in large cap value, blend and growth, with some added mid cap value and blend styles.
PEJ is based on the Dynamic Leisure & Entertainment Intellidex℠ Index, which is designed to provide capital appreciation by carefully evaluating companies on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value. The index is comprised of common stocks of 30 US leisure and entertainment companies.
PEJ will normally invest at least 90% of its total assets in the common stocks that make up the index.
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