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:
kid with headphones on watching a video on iPad

Image source: Getty Images

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

a wide-mouthed man looks scared as he grips the wheel of a car while driving in a murky environment.
International Stock News

Down 18% from all-time highs, is Tesla stock a buy now?

Tesla's Q4 delivery and production figures missed Wall Street's expectations, and shares have been selling off on the news.

Read more »

Three people jumping cheerfully in clear sunny weather.
International Stock News

Billionaire Bill Gates has 66% of his foundation's $44 billion portfolio invested in 3 phenomenal US stocks

Some of the biggest holdings in the Gates foundation's trust are surprisingly non-tech.

Read more »

A happy elderly man wearing a red cape smiles as he jumps up like a hero from a massage table.
International Stock News

Can a $25,000 Iinvestment in Nvidia stock today turn into $1 million by the time you retire?

Nvidia is one of the most valuable companies in the world today, with a market cap of $3.4 trillion.

Read more »

Two boys in business suits holding handfuls of money
International Stock News

Prediction: This artificial intelligence development will be a once-in-a-generation opportunity for Nvidia

Nvidia has the chance to generate growth as companies apply AI in the real world

Read more »

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
International Stock News

1 Warren Buffett stock that could go parabolic in 2025 and beyond

There's one laggard in the Berkshire Hathaway portfolio that can turn things around this year. Bonus: It also happens to…

Read more »

A woman stacks smooth round stones into a pile by a lake.
International Stock News

If I could buy only 1 'Magnificent Seven' stock in 2025, this would be it

2024 was another all-around terrific year for the Magnificent Seven.

Read more »

A boy holds on tight as his gaming console nearly blows him away.
International Stock News

Nvidia's new graphics cards double down on AI

With broad adoption of Nvidia-specific features, these AI innovations should keep the company on top.

Read more »

A person is weighed down by a huge stack of coins, they have received a big dividend payout.
International Stock News

5 US stocks Warren Buffett is betting big on for 2025

These five companies -- one of which is near and dear to the Oracle of Omaha's heart -- stand out…

Read more »