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Or sign-in if you have an account.Disney is not set up to compete with high-volume streamers like Netflix Inc. and YouTube and “it’s an open question whether their release cadence is sufficient to manage churn." Photo by PATRICK T. FALLON/AFP via Getty ImagesWalt Disney Co. shares have been in a slump for years, but Wells Fargo Securities said there’s one possible move that could reverse the trend: ditching its streaming-video business.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe firm estimated that such a move could add about 40 per cent to the stock price by tightening the company’s focus on intellectual property and experiences. While streaming is popular with consumers, especially in comparison with traditional TV and movie-theatre releases, analyst Steven Cahall said it has been bad for shareholders.Disney shares have lost nearly half their value over the past five years while the S&P 500 index has surged more than 70 per cent. Cahall argued that streaming is a major culprit behind the underperformance.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againHe said Disney is not set up to compete with high-volume streamers like Netflix Inc. and YouTube and “it’s an open question whether their release cadence is sufficient to manage churn for LT margins.” The firm has an overweight rating on the stock but lowered its price target to US$125 from US$146. On Monday, the shares rose about 0.8 per cent to US$96.37.Instead of running its own service, he argued that the company should focus on licensing out its valuable library of intellectual property, which includes Disney’s animated features, Pixar movies and the Marvel and Star Wars franchises. Wells Fargo sees that roster as increasingly valuable at a time when other streaming services — including Apple Inc., Amazon.com Inc., Netflix, Alphabet Inc.’s YouTube, and Paramount Skydance Corp. — are likely to compete heavily for licensing rights to top titles.If Disney was “focused purely on content vs. distribution,” it could generate more than US$15 billion in annual licensing revenue, Wells Fargo estimated, representing strong growth relative to its licensing revenue prior to its pivot to streaming in 2019. “We don’t think the box office, Experiences, or brand value would suffer if the library were on a competing global streamer.”The company will report its third-quarter results next month. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.