Adam Woodgate’s Post

“Disney’s total segment operating income jumped 17% as Disney’s entertainment streaming applications — Disney+ and Hulu — turned a profit in the quarter for the first time. When combined with ESPN+, the streaming businesses lost $18 million in the quarter, much narrower than the $659 million loss the division reported a year earlier. Entertainment streaming revenue (excluding ESPN+) rose 13% in the quarter to $5.64 billion, and operating income was $47 million after a loss of $587 million a year prior. Disney credited increased Disney+ subscribers and higher average revenue per user for the gains. Disney+ Core subscribers increased by more than 6 million in the second quarter to 117.6 million global customers. Total Hulu subscribers grew 1% to 50.2 million. ESPN+ subscribers fell 2% to 24.8 million. Here is what Disney reported compared with what Wall Street expected, according to LSEG: - Earnings per share: $1.21 adjusted vs. $1.10 cents expected - Revenue: $22.08 billion vs. $22.11 billion expected”

Disney has recorded the first profit in its core streaming business, with Disney+ and Hulu earning $47m in its fiscal second quarter for 2024. It reported a $587m loss on these services in the same quarter in 2023, but despite the turnaround, the company stock price dropped by around 10% yesterday, with the Mouse House missing revenue estimates for the fourth consecutive quarter. While investors had short-term concerns about the theme parks side of the business, overall revenue rose from $22.1bn in the quarter, from $21.8bn on the previous year, beating Wall Street expectations. Including the company’s sports streamer ESPN+, streaming losses were reported as $18m, narrowing the gap from the $659m loss at this point last year. Disney said it still expects to achieve its goal of streaming profitability for its combined services by the fourth quarter of this year, which it first set out in 2019. The number of Disney+ core subscribers (not including Disney+ Hotstar) rose by 6.3 million to 117.6 million, again beating analyst predictions. Hulu, meanwhile, rose by 1% to 50.2 million subs in the quarter. “Our results were driven in large part by our Experiences segment as well as our streaming business,” said Disney CEO Officer Bob Iger. “Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.” Source: Television Business International

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

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

Disney's decision to increase streaming prices for platforms like Disney+, Hulu, and ESPN+ appears to be a strategic response to the challenges faced by its streaming division. Despite the reported financial losses within this division, the announcement of price hikes resulted in a 4% boost in Disney's stock value. This positive market reaction suggests that investors are interpreting the price hikes as a favorable move by Disney. This also implies a level of confidence in Disney's ability to manage its streaming endeavors, potentially indicating a positive outlook for the company's digital entertainment ventures. Will these price adjustments help Disney better balance its streaming-related costs and revenue, contributing to a more sustainable path for its streaming ambitions? We have to wait and watch! #disney #streamingservices #pricehikes #investors #marketresponse

FYI: Disney reports mixed Q2 Earnings: streaming growth offset by park downturn: The report revealed a mixed bag of results, with strong growth in the company's streaming services balanced by a decline in revenue from its Parks, Experiences and Products (PEP) segment.

ICYMI: Disney reports mixed Q2 Earnings: streaming growth offset by park downturn: The report revealed a mixed bag of results, with strong growth in the company's streaming services balanced by a decline in revenue from its Parks, Experiences and Products (PEP) segment.

Disney reports mixed Q2 Earnings: streaming growth offset by park downturn: The report revealed a mixed bag of results, with strong growth in the company's streaming services balanced by a decline in revenue from its Parks, Experiences and Products (PEP) segment.

The Streaming Boom can help Disney recover and increase its profit margin! Link - https://bitly.ws/VzUp The Walt Disney Company, consisting of 5 separate units, is facing losses in its Linear Networks, D2C, and Content Sales and Licensing Segments, while its profit margins have significantly reduced for its Media and Entertainment segment. To recover from the loss, Disney is eyeing to capitalize on the streaming boom. As a result, Disney is planning to revamp the pricing structure of Disney+ this fall. In the revamped pricing structure, the company is going to offer enough flexibility to its customers, by including multiple ad-based hybrid plans, and plans with ad-on services like Hulu and ESPN Plus. Hence, multiple monetization options are the key to streaming success. If you also want to develop a streaming platform with multiple monetization models, switch to Muvi One. Using Muvi One, you can develop platforms that offer all forms of monetization, including SVOD, AVOD, PPV, Vouchers, and Coupons. Start your 14-day free trial today!  

Disney beat quarterly earnings estimates and raised its guidance as it saw progress in its effort to cut costs. Revenue was about flat at $23.55 billion, compared with $23.51 billion in the year-ago quarter. Disney’s direct-to-consumer unit reported a $138 million operating loss in the quarter. Including the performance at ESPN+, losses for all its streaming businesses narrowed to $216 million, from $1.05 billion in the prior-year period. Disney+ core subscribers shrank by 1.3 million from the prior quarter due to price increases, but the company saw a rise in average revenue per user because of subscription cost hikes. #streaming #disney #espn