Disney reached 235 million subscribers through its streaming services, which include Disney +, Hulu / Star +, and ESPN +. With that, the conglomerate has opened the distances from Netflix, which had 223.1 million subscribers in the last quarter.
The company’s flagship, Disney +, surpassed Wall Street expectations, adding 12.1 million subscribers and totaling 164.2 million in the last quarter.
Disney + numbers are staggering compared to Hulu (which only added 1 million subscribers) and ESPN + (up 1.5 million). But accounting doesn’t mention Star + figures in Latin America. It is worth noting that in Europe Hulu / Star + content is offered within the Disney + platform.
Despite the growing number of subscriptions, financial losses related to the cost of streaming also continue to grow, almost doubling compared to last year. At this point, Disney already has a loss of $ 1.47 billion in spending on content production, operation, and expansion of its platforms.
In a statement on the company’s fiscal fourth quarter earnings projection, Disney CEO Bob Chapek suggested that streaming losses have peaked and that the company is heading towards profitability as early as fiscal year 2024.
“The rapid growth of Disney + in just three years since launch is a direct result of our strategic decision to invest heavily in creating great content and launching the service internationally, and we expect our operating losses to decrease in the future and that Disney + can still achieve profitability in fiscal 2024, assuming we don’t see a significant change in the business climate, ”said Chapek.
If that happens, Disney will only be the second company to make a profit from streaming. Currently, only Netflix has positive revenues in this market, after more than a decade of losses.
During his statement to shareholders, Chapek said that streaming losses have entered a “tipping point” and outlined a three-pronged plan to achieve profitability: increase in subscription prices and advertising plan, “significant rationalization. “more efficient marketing and content spending.
Chapek emphasized the subscription model with ads in this strategy. “By realigning our costs and realizing the benefits of the price increases and our plan with Disney + announcements on December 8, we believe we are on track to build a profitable streaming business that will drive continued growth and generate value for the shareholders for the future. ” “.”
According to the CEO, the company already has contracts with more than 100 advertisers for its advertising subscription plan.
For this and rival reports, Wall Street is already starting to predict streaming profitability, pointing out that the subscriber war would be nearing an end.
Disney’s overall revenue was $ 20.1 billion for the quarter, below Wall Street expectations, with operating income of $ 1.6 billion.
In the media segment, direct-to-consumer revenues were $ 4.9 billion in the quarter, up 8% year-on-year, while linear network revenues (broadcast and pay TV) were $ 6. $ 3 billion, down 5% year on year.
The operating result, on the other hand, grew by 6% on linear networks, reflecting better results in pay-TV and “modest” earnings in the open broadcast segment.
The company also reported that its Parks, Experiences and Products division had its best year ever, with $ 7.4 billion in revenue in the quarter and $ 28.7 billion in fiscal 2022.
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Source: Terra
Emily Jhon is a product and service reviewer at Gossipify, known for her honest evaluations and thorough analysis. With a background in marketing and consumer research, she offers valuable insights to readers. She has been writing for Gossipify for several years and has a degree in Marketing and Consumer Research from the University of Oxford.
