Siprocal’s Post

Disney beat its own timeframe to reach streaming profits in an upbeat June quarter that also saw a big contribution from Inside Out 2. For well over a year, the company’s promised a streaming swing to the black in the 2024 fiscal fourth quarter but nailed it earlier, reporting $47 million in DTC operating income in Q3 (vs a $512 million loss the year before). Disney+ and Hulu actually lost $19 million (on $5.8 billion in revenue) but that was more than offset by ESPN+. Disney+ and Hulu should turn profitable and combined streaming income grow in the current September quarter.

Streaming shifts to profitability: The Walt Disney Company and Paramount lead the charge 🏆 The latest earnings reports from both Disney and Paramount Global highlight a major shift away from subscriber growth to a focus on profitability. Disney’s Q3 results showcased a 19% growth in total segment operating income, driven by their Direct-to-Consumer services. For the first time, Disney’s combined streaming businesses, including ESPN+, achieved profitability. The inclusion of SportsVOD content, such as ESPN, continues to be a key differentiator. Similarly, Paramount Global turned a $26 million profit in its Q2 direct-to-consumer segment, marking a significant turnaround from last year’s loss. Paramount+ saw year-over-year growth in both subscription and advertising revenue, fueled by strong content like “Knuckles” and “The Chi.” These results underscore a broader industry trend: the battle has shifted from subscriber numbers to profit. Back in April, Netflix stock took a tumble when they announced they would no longer report subscriber numbers and ARPU guiding investors to focus on total revenue. All of these events are evidence that the streaming market, once the disrupter, has reached maturity and become part of the “institution” that needs to generate profit and cash. As companies like Disney and Paramount continue to scale their streaming operations globally, managing costs and optimizing revenue streams becomes crucial. Finding new customers through new channels is crucial. Lighting up these channels quickly at the lowest possible cost becomes key. This is where the Digital Vending Machine® from Bango can help. By providing a single connection to hundreds of channels worldwide, we help streamline operations and reduce the complexity of scaling content distribution, enabling our partners to focus on what they do best—creating and delivering exceptional content. Check out the full details in Disney’s and Paramount’s earnings reports: Disney Q3 2024 Earnings - https://lnkd.in/e5AiDsrN Paramount Q2 2024 Earnings - https://lnkd.in/e-AKrCRx #Streaming #Profitability #DigitalTransformation #SportsVOD #Bango

The streaming entertainment unit of The Walt Disney Company posted its first profit on today (7 May '24) - two quarters ahead of schedule. (The company having promised Wall Street that its streaming operation would become profitable by September). For January to March '24, the division - which includes the Disney+ and Hulu streaming services - reported operating income of $47 million, compared with a loss of $587 million a year earlier. However, the combined streaming business with ESPN+ lost $18 million. (The division lost $659 million in the previous year). Disney+ added more than 6 million customers during the quarter, and average revenue per user rose 44 cents, outside of India. Within Disney's entertainment division - the home of the traditional TV business, streaming and film - operating revenue grew 72% from a year earlier to $781 million. The sports unit that includes ESPN saw operating income decline by 2% to $778 million, which it attributed to the timing of college football playoff games. Disney now expects adjusted earnings per share to rise by 25% this fiscal year, the company said, up from its previous forecast of 20%. It attributed the change to strong results at theme parks and improvements in the streaming business. #streaming #television #sports https://bit.ly/3JMMfkG

Disney finally posted their first profitable quarter for their streaming wing (Disney+, Hulu, ESPN+), and they beat their own guidance by 2Q. Why is this a big deal? The company has spent tens of billions of dollars on building their platforms since its first commitment to streaming. This mostly includes series development, staffing, marketing, and licensing content (probably mostly for Bluey 😂). In an era where consumer access to entertainment is easier than it ever has been by a magnitude that is tough to fathom for younger audiences, Disney knew that it couldn't rely solely on exclusivity and scarcity of its creations. They were losing home viewing share to companies like Netflix and Amazon at a rate they couldn't afford to sustain. While they knew there would be a seriously steep loss leader in entering the sector, but in order to continue to be a leader in entertainment, they had to endure quarter after quarter of losses. This generation of content production has mostly been about acquiring users in exchange for R&D spend. Disney is proving that there is a shelf life to that arrangement and it bodes well for the streaming industry as a whole, especially for up-and-coming players. Do other studios or brands have the same level of fandom? I think WB/Discovery is most intriguing company to watch in the space, as it is taking a much different approach from Disney at this point in its operation. Will WB/Discovery's austerity prove profitable or will users still prefer to expect rising prices with the cost investment needed for perpetual content creation?

Encouraging subscriber growth reported by Disney+ this week, alongside a decision to crack down on password sharing.    Will it work? According to Netflix’s results last month, preventing password sharing contributed to over 9 million new subscribers in their first quarter. A Bloomberg Intelligence report believes this could be worth as much as $4 billion in additional revenue for The Walt Disney Company.    Bango consumer research has revealed the outcomes of password sharing crackdowns on streaming subscribers themselves. Earlier this year, we found more than 1 in 3 US subscribers had started paying for a service in the past year they previously accessed for free, using someone else’s account.    More importantly, the data showed a desire for flexibility. Consumers like to hop between different streaming platforms to chase the latest movies and TV shows. One third of subscribers already jump between platforms, often cancelling and restarting subscriptions.    The consumer demand for flexibility and cross platform experiences is fast growing, as indicated by our research and backed up by decisions such as this week's Disney/Warner bundle. The market is speeding towards Super Bundling content hubs. https://lnkd.in/euADAFgY   #streaming #growth #research

Streaming services are reintroducing ads, and it's a double-edged sword for customers. On one hand, these ad-supported tiers offer more affordable subscription options. On the other hand, they may lead to a less enjoyable user experience due to interruptions and potential privacy concerns. Hulu is set to generate $2.7 billion in ad revenue by 2025, leading the charge in ad-supported streaming. Netflix plans to introduce a lower-priced ad-supported tier later this year, and Disney+ is also hopping on the ad bandwagon with a similar tier by the end of 2023. With targeted advertising relying heavily on user data, privacy issues are a significant drawback. The ambiguity around whether existing ad-free subscribers will face increased costs or interruptions could lead to dissatisfaction and churn. As streaming services evolve, customers will need to carefully weigh the benefits and drawbacks of these new offerings. What are your thoughts on the return of ads in streaming services? Are you willing to trade an ad-free experience for a lower subscription cost? #streaming #advertising #Hulu #Netflix #DisneyPlus #customerexperience #privacyconcernshttps://lnkd.in/gM9unnkn

Disney is stepping up its game in the streaming world! According to Variety, Disney's streaming platforms are getting a major technical upgrade to rival Netflix. Bob Iger, Disney's former CEO, shared insights into the company's strategy for enhancing user experience and content delivery. With this move, Disney is doubling down on its commitment to providing top-notch streaming services. As the competition in the streaming space heats up, Disney is making sure it stays ahead of the curve. This development is not just about technical improvements; it's about offering viewers an unparalleled streaming experience. As consumers continue to embrace streaming as their go-to entertainment source, it's essential for companies like Disney to innovate and adapt. #Disney #Streaming #NetflixRival #Entertainment #Innovation #BobIger #Variety #TechUpgrade

✅🖥️ The Verge (3/27): “But “it’s just Hulu inside of Disney Plus” turns out to be a bigger deal — and a bigger undertaking — than it sounds. As it has prepared to integrate Hulu, Disney has also been changing the way the whole company thinks about streaming. It has worked to better integrate everything from login tools to advertising platforms to metadata and personalization systems so that Disney can go from owning a collection of streaming services and platforms to having something much more like a single product across the whole company. So, yes, Hulu is just a tile. But that tile also seems to represent something bigger inside of Disney: the full Disney Plus-ification of everything, as the tech and strategy it built over the last few years percolates out to everything else Disney does. “We zoomed out and took a very long-term approach,” says Aaron LaBerge, the president and CTO of Disney Entertainment and ESPN. “We’re going to be running a streaming service forever.”Here’s just one example of what that looks like: estimates (say) that Disney had to move more than 100,000 individual assets from Hulu to Disney Plus in order to make this work. “It’s a mixture of content that we own and content from our partners,” Disney says. “Every partner shares that content in different ways, in different formats, with different metadata attached.” ⬇️ #streamingtv #ctvadvertising #cordcutting #consolidation https://lnkd.in/e3nK8Cu2

Disney’s streaming services have hit a profitable stride in Q1 2024, with a $500 million savings and a $7.5 billion annualized savings target by year’s end. The company forecasts a 20% EPS increase and $8 billion in free cash flow, alongside a subscriber growth for Disney+ Core despite price hikes. These results reflect Disney’s successful strategic shifts and cost-efficiency measures. #Q1EarningsGrowth #StrategicEfficiency #SubscriberGrowth #MediaTransformation https://lnkd.in/ehQUngw2