New Disney+ pricing shows maturing business, focus on profitability - LightShed's Rich Greenfield
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Analyst Rich Greenfield said Thursday that a new ad-supported subscription tier for Disney's (NYSE:DIS) streaming service marks a transition for the business, as the company's focus is shifting from aggressively adding customers to seeking profitability.
"This is Disney realizing they are relatively mature, meaning they've reached most of the customers who are going to pay for Disney+ and now pushing aggressively on price," the LightShed Partners co-founder told CNBC.
The comments followed news that Disney+ had launched a $7.99 ad-supported tier, $3 less than the ad-free version of the service.
Greenfield noted that the Disney+ service has lost $4B over the past year, leading him to conclude that "they need to get this to profitability."
The LightShed co-founder added that Disney+ users will likely pay a higher price for the service because of the "sticky" nature of the family content. The company will also benefit from demand from advertisers, who are eager for new inventory space on streaming platforms, he said.
More broadly speaking, Greenfield wondered how the recent leadership change at the entertainment giant will impact its overall strategy, with Bob Iger returning to the helm. The analyst argued that Disney might benefit from a tighter focus on its core areas rather than attempting to expand its offerings.
"It does feel like Disney is best suited to just being more narrow and really owning it, maybe selling Hulu, getting out ESPN," he said.
To support his view, Greenfield highlighted high demand for Disney's theme parks, despite multiple increases in prices. 
Looking at the firm's stock price, DIS has bounced off a 52-week low of $86.28 to trade around $92.30 in Thursday's intraday action. However, the stock has still lost around 40% of its value over the past 12 months.
Meanwhile, streaming rival Netflix (NASDAQ:NFLX) plunged earlier in the year but has recovered ground steadily in the last several months. The stock remains 51% lower over a 12-month timeframe but has climbed over 80% since June.
For more on Bob Iger's return, see why SA contributor Steven Mallas says "Disney stock continues to be a long-term buy, but average-in carefully during the bear market."
Also read: Disney Vs. Netflix: Who Is Going To Be The New King Of Streaming?