Disney’s Streaming Biz Is Still Profitable Heading Into The Upfronts
Disney had a good quarter, with revenue on the rise and streaming on the brain. Its DTC division, which houses its streaming business, is also growing and remains profitable.
Disney had a good quarter, with revenue on the rise and streaming on the brain. Its DTC division, which houses its streaming business, is also growing and remains profitable.
Disney’s revenue rose 5% to $24.7 billion last quarter, up from $23.5 billion this time last year. But subscriber growth at The Mouse House looks less promising.
During its earnings call on Thursday morning, Disney announced plans to bring ESPN+ content to Disney+ starting on December 4,
Last quarter, Disney’s combined streaming portfolio – Disney+, Hulu and ESPN+ – turned a profit for the first time, bringing in $47 million from April through June. It’s quite the bounceback from last year, when Disney’s media and entertainment segment lost $512 million.
During Disney’s upfront event on Tuesday, just hours after Amazon’s, the Mouse House couldn’t hold back on pitching its content and advertising prowess. Sports was a big highlight.
Disney is on track for its combined streaming offerings to reach profitability by the end of this year. Continued growth will hinge on bundling its streaming properties and its management of sports media.
In today’s newsletter: Shoppable TV needs a better reason to exist; Disney+ will roll out password-sharing bans worldwide this summer; and “Bluey” is a huge hit, but Disney doesn’t make much from it.
Why are there so many loss-leading streaming services? Blame it on Bob Iger, says LightShed’s Rich Greenfield.
Disney is starting off the year with subscriber losses. But the Mouse House says it’s all part of the plan.
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