Disney says it's using Amazon's infrastructure for its worldwide Disney+ expansion

Amazon Web Services is key to the streaming service's rapid growth, executives say.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The swift expansion of Walt Disney's (NYSE: DIS) Disney+ streaming service across multiple countries is largely thanks to Amazon's (NASDAQ: AMZN) Amazon Web Services infrastructure, executives from the entertainment conglomerate said today. As reported by Streaming Media and other outlets, Disney says it is increasing its reliance on Amazon Web Services (AWS) even more as it continues to push for wider distribution.

One of Disney's executive vice presidents, Joe Inzerillo, said in a statement, "AWS has been our preferred cloud provider for years, and its proven global infrastructure and expansive suite of services has contributed meaningfully to the incredible success of Disney+."

The company says it has been using AWS for its streaming service from the start, well before the late 2019 launch of Disney+, because of its "reliability, scalability, and breadth of functionality."

Now Disney is adding even more AWS features to its service as it continues to push expansion beyond the 59 countries where Disney+ is already available. These include analytics to ensure efficient delivery of quality streams, database systems enabling immediate switching between shows on different devices, and machine learning.

Disney's focus on improving Disney+ perhaps reflects its second-tier profitability for the company. While Disney+ is the company's most widespread streaming service by far, Hulu currently brings in approximately twice the monthly revenue. The House of Mouse also recently inked a deal with Sony Group (NYSE: SONY) to add Spider-Man and a range of other Sony films to its Disney+ lineup, though these will also appear on Hulu. 

For its part, a lockdown-driven surge in home entertainment consumption has led Amazon to invest significantly in its Prime Video service in addition to further developing its streaming infrastructure overall. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Rhian Hunt has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Walt Disney and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on International Stock News

Blue electric vehicle on a green rising arrow with a charger hanging out.
International Stock News

Boom! Why has Tesla stock rocketed 68% so far in 2023?

It's already been a year to remember for the electric vehicle giant.

Read more »

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.
International Stock News

How an AI demo erased $140 billion from Alphabet stock

One error made this a costly display of Alphabet's new technology.

Read more »

A man with a beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.
Share Market News

Meta stock price rockets 19% on $56 billion buyback

Meta stock has just seen one of its biggest jumps in history...

Read more »

woman looking surprised watching netflix
International Stock News

The Netflix share price just popped. Here's one way to buy in on the ASX

Here's one way to get a slice of whatever future Netflix might have.

Read more »

A futuristic view of electric vehicle technology with speeding bright light trails indicating power.
International Stock News

If I'd bought $5,000 of Tesla stock 3 years ago, what would my investment be worth now?

Here's how much mind-blowing money investors have made on Tesla stock in three years...

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
International Stock News

Alphabet stock: A once-in-a-decade opportunity to outdo Warren Buffett?

Is now the time to snap up shares in the global tech giant?

Read more »

Piggy bank on an electric charger.
International Stock News

Aussie investors are buying Tesla shares in droves. Should you?

A beaten-up stock, dramatic price cuts, and a controversial leader -- does investing in Tesla still make sense?

Read more »

Happy woman on her phone while her electric vehicle charges.
International Stock News

Should I buy Tesla stock for 2023 or not?

Is it finally time to buy Tesla stock?

Read more »