Disney streaming service could amass 160 million subscribers, J.P. Morgan says

J.P. Morgan analyst Alexia Quadrani penned an upbeat note on Walt Disney Co.'s prospects in streaming on Wednesday, writing that she estimates the forthcoming Disney+ service will ultimately be able to attract 45 million subscribers domestically and 160 million subscribers in total. "According to the U.S. government census, there are 34.5 million family households in the U.S. with children under 18, and we believe 75% of these households will eventually sign up for Disney+ due to the service's popular appeal, exclusive content, and brand recognition," she wrote. In addition, Quadrani expects that 30% of U.S. families without children will sign up for the service due to the presence of Marvel and Star Wars content. Internationally, Quadrani predicts that 115 million subscribers will ultimately sign up, though she warns that the growth trajectory will depend on when Disney gets some of its content rights reverted back. She wrote that Disney's ESPN+ streaming service has "surpassed expectations" with 2 million subscribers as of an announcement in early February. "We view streaming services as a positive addition to Disney's ecosystem," Quadrani said. Disney shares are down 0.3% over the past three months, while the Dow Jones Industrial Average is up 3.4%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.