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Walt Disney and the End of Moviegoing - Barron's
Aug 08, 2020 1 min, 24 secs

Mulan is coming to Disney+, and how we watch movies might be changing forever.

With few signs that Americans were ready to return to movie theaters, something had to give—and Disney finally decided to take advantage of the platform it had available.

Disney has said that it doesn’t plan to change how it releases movies in the future—that this is a one-off situation brought on by Covid-19 and that it still plans to release movies under the traditional model to theaters first—but not everyone is buying it.

The economics might also be better: Disney would keep as much as 85% of sales through Disney+ versus 55% from a release into theaters.

If Disney’s digital strategy is good for its stock, it most certainly is not for the shares of traditional movie theaters, LightShed’s Greenfield says.

He believes the wait times between the release of a film to theaters and then to rental and other platforms will shrink, with fewer people going to theaters to see movies.

On Thursday, Apple (AAPL) gained 3.5%, to $455.61, putting it nearly 24% over its 50-day moving average.

The 50-day moving average measures the short-term trend of a stock, and technical analysts watch it for signs of support and resistance.

That’s what happened the last time Apple traded more than 20% above its moving average.

In March 2012, the stock traded as much as 22.81% above its 50-day moving average and ended up losing more than 20% over the next year.

To be sure, trading 20% above the 50-day moving average hasn’t always been a warning sign for Apple.

Still, there are signs that Apple stock needs to cool down.

, and how we watch movies might be changing forever

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