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Zacks Equity Research September 29, 2021
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Disney (DIS – Free Report) recently announced that it will work with Amazon (AMZN – Free Report) to launch a custom voice-assistant dubbed Hey, Disney!, which will be available on Amazon’s Echo devices.
Alexa Custom Assistant is a new business-focused solution built on Alexa technology that allows Disney to create its custom voice assistant tailored to Disney’s personality and customer needs. It uses unique wake words, voices, personalities, and capabilities, and they can coexist and even work together with Alexa.
The new Disney-branded Hey, Disney! personality unlocks an interactive Disney experience on Echo. Users will be able to use the Hey, Disney! wake word to interact with characters from Disney, Pixar, Marvel and Star Wars characters including Mickey, Dory and Olaf besides related jokes, stories, interactive trivia, and greetings as well as special surprises centered around beloved Disney characters. There are even audio environments, called soundscapes, which are inspired by Disney films.
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While these experiences will be available for kids and families at home, the entire ecosystem will be embedded into the Disney resort experience. The Hey, Disney! Voice assistant will also be installed in Walt Disney World Resort hotel rooms. Walt Disney World Resort hotel rooms as part of an upcoming integration using Amazon’s Alexa for Hospitality service.
Hey, Disney! will be ultimately used for customer service inquiries, helping Disney World or Disneyland visitors find answers to park-specific questions. Hotel guests will also be able to interact with the service for hotel-specific services. Alexa-based functions related to news, sports scores, music, and more will be available too.
Disney might heave a sigh of relief as the company’s theme parks and resorts could potentially be back to operating at full capacity by fall. Hey, Disney! is expected to be available for purchase in the United States in the Alexa Skills Store for use on all supported Echo devices beginning in 2022.
Besides, the latest Echo Show 5, a smart display with a 5.5-inch touchscreen, is coming to Disney hotel rooms in Florida. The latest Echo Show can be mounted on a wall and is powered with AZ2 Neural Edge, a processor that helps users personalize the screen.
Customers in the United States can bring even more Disney magic to their homes with a new Mickey-inspired OtterBox Den Series stand for Echo Show 5, available for pre-order for $24.99.
Over the past year, the global shutdown of theme parks to contain the spread of coronavirus has adversely impacted Disney’s Parks, Experiences & Products segment, which includes its theme parks, resorts and the Disney Cruise Line.
Disney World is currently celebrating its 50th anniversary at Walt Disney World Resort. Each of the four theme parks — Magic Kingdom, EPCOT, Hollywood Studios, and Animal Kingdom — is filled with new decorations, events, and attractions for visitors.
The Epcot Theme Park has been undergoing a massive transformation to bring on Remy’s Ratatouille Adventure ride (first premiered in Paris), a new nighttime water show called Harmonious, and the Guardians of the Galaxy: Cosmic Rewind roller coaster.
Moreover, Shanghai Disneyland is working on a Zootopia Land while Tokyo is prepping for a major Disney Sea-themed port expansion including Frozen, Tangled and Peter Pan areas.
Such initiatives are expected to boost revenues for Disney’s Disney’s Parks, Experiences & Products segment while this Zacks Rank #3 (Hold) company expects Disney+ subscriptions to hit its long-term targets. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Disney+ will also add some important new international markets when it debuts in South Korea and Taiwan on Nov 12, and in Hong Kong on Nov 16. This is expected to aid international subscriber growth and revenues to compete better with the likes of Netflix (NFLX – Free Report) , Apple TV+, Comcast’s (CMCSA – Free Report) Peacock, and HBO and HBO Max among others.
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