Disney still faces unprecedented challenges in many of its largest divisions, including theme parks, but its fourth-quarter earnings report highlights an area that has not stopped growing: streaming.
Overall, Disney’s fourth-quarter revenue was better than expected, earning $14.7 billion, compared with the previous estimate of $14.2 billion. A large part of this comes from Disney’s streaming media division, which has been growing and currently has more than 120 million users across all of its services worldwide. The return of sports has also helped its media network division generate advertising revenue. However, the parks, experience and consumer goods sectors continued to fail, with a year-on-year decline of 61
In the past few weeks, Disney announced a major reorganization designed to prioritize streaming. Transferred the next important Pixar version, soul, With the exclusive title of Disney Plus; and is preparing to hold an investor day focused on streaming media on December 10, which will include more information about the launch of Disney’s new international streaming service Star. Under the leadership of CEO Bob Chapek, Disney publicly announced that it would prioritize the direct-to-consumer division, while major shareholders like Dan Loeb have publicly asked Disney to invest more in streaming media. As Guggenheim analyst Michael Morris wrote in a report, Disney is “fluidizing its main monetization mechanism.”
Today also happens to be the anniversary of Disney Plus.
Disney easily celebrates its position in the direct-to-consumer market. Disney Plus has experienced unprecedented growth, from 10 million users to 73.7 million in the first 24 hours. With the exception of Netflix and Amazon Prime Video, it has outperformed almost all competitors, which is closely related to Amazon’s retail department.
The first year of Disney Plus was incredibly successful.The company’s streaming media bundles have also driven the growth of other platforms, with Hulu’s users increasing to 36.6 million And ESPN Plus is as high as 10.3 million. However, streaming is not a sprint. This is a marathon. The bigger question is how does Disney maintain this momentum? How does it stop people from unsubscribing and following other competitors, such as Netflix and HBO Max, or free video platforms (such as TikTok and YouTube)? According to Antenna Analytics, the number of people canceling Disney Plus subscriptions is currently slightly lower than the industry average, but Disney must try to ensure its continued growth.
Disney’s two biggest problems are to provide more consistent program and movie output, and to provide a more diverse content lineup. The first one is easier to fix. Production of series and movies designated by Disney Plus has been resumed.Other highly anticipated series, such as Wanda Vision Will help to start the new year and enable people who are currently opening Disney Plus Mandalorian Reasons for persistence. Disney is taking time to figure out how to keep Disney Plus fresh. This may include requiring the head of the studio to redistribute movies or shows specifically for theatrical distribution or online TV to Disney Plus.
The more challenging obstacle that Disney must face is how to find subscribers among uninterested audiences Star wars Or surprise.The largest surge in Disney Plus subscribers did not come from Mandalorian Either Hua Mulan -It comes from Hamilton.
Chapek told Disney employees all at the time HamiltonThe audience of is important because it represents a group of subscribers who are different from the company’s ordinary customers.Disney needs to find more Hamilton A moment for non-Disney fans to subscribe and provide a lot of interesting content (not just Disney classics) for them to watch, which will allow them to stay there after watching a movie or TV show.
Several departments of Disney still have a long way to go. Disneyland is unlikely to open anytime soon, and as cases increase, more parks around the world may face shutdowns (such as Paris). Disney’s studio business relies on the restoration of the normal appearance of movie theaters, which in turn depends on people being at ease in movie theaters again. This may not be realized until the vaccine is released. Although Disney’s media network department has seen some advertising returns, people are still cutting cable packaging. This trend will not slow down.
Most of the uncertainties of Disney’s future-streaming is not the same thing.