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Disney says streaming business at 'turning point' | Disney says streaming business at 'turning point' |
(3 months later) | |
Disney said its Disney+ streaming platform has more than 164 million subscribers globally | Disney said its Disney+ streaming platform has more than 164 million subscribers globally |
Disney's streaming business has continued to grow - but its losses are rising too. | Disney's streaming business has continued to grow - but its losses are rising too. |
The media giant said it had added more than 12 million subscribers to its Disney+ streaming platform in the three months ended in September. | The media giant said it had added more than 12 million subscribers to its Disney+ streaming platform in the three months ended in September. |
But the unit lost nearly $1.5bn - a hit that weighed on the company's overall bottom line. | But the unit lost nearly $1.5bn - a hit that weighed on the company's overall bottom line. |
Chief executive Bob Chapek said Disney+ had reached a "turning point" and would become profitable by 2024. | Chief executive Bob Chapek said Disney+ had reached a "turning point" and would become profitable by 2024. |
"We believe we are on a path to a profitable streaming business, assuming that we do not see a meaningful shift in the economic climate," he said on a conference call to discuss the firm's results. | "We believe we are on a path to a profitable streaming business, assuming that we do not see a meaningful shift in the economic climate," he said on a conference call to discuss the firm's results. |
Disney has poured billions of dollars into its streaming platforms in recent years, remaking itself from a company rooted in traditional television and movies into one of the streaming industry's major players. | Disney has poured billions of dollars into its streaming platforms in recent years, remaking itself from a company rooted in traditional television and movies into one of the streaming industry's major players. |
The company now counts more than 235 million subscriptions across its three streaming platforms, which also include the sports-focused ESPN+ and wider enterainment site Hulu. | The company now counts more than 235 million subscriptions across its three streaming platforms, which also include the sports-focused ESPN+ and wider enterainment site Hulu. |
Netflix, by comparison, has about 223 million subscribers. | Netflix, by comparison, has about 223 million subscribers. |
As it turns its focus to profitability, Disney has announced plans to raise prices and introduce a version of Disney+ with adverts. | As it turns its focus to profitability, Disney has announced plans to raise prices and introduce a version of Disney+ with adverts. |
Overall the company said revenues rose 9% in the three months ended in September, and were up 23% for its financial year. | Overall the company said revenues rose 9% in the three months ended in September, and were up 23% for its financial year. |
It reported profits of $162m, up from $159m last year. | It reported profits of $162m, up from $159m last year. |
That was lower than analysts had expected, sending shares down more than 5% in after-hours trade. | That was lower than analysts had expected, sending shares down more than 5% in after-hours trade. |
The firm was also hurt by weakness in its traditional movie and television business, which saw declines in advertising, and rising costs cut into its profits. | The firm was also hurt by weakness in its traditional movie and television business, which saw declines in advertising, and rising costs cut into its profits. |
Paolo Pescatore, an analyst at PP Foresight, said it was a "disappointing quarter" that "underlines the challenges a media giant faces in pivoting towards a streaming future". | Paolo Pescatore, an analyst at PP Foresight, said it was a "disappointing quarter" that "underlines the challenges a media giant faces in pivoting towards a streaming future". |
"Quest for subscribers comes at a cost and success is not guaranteed," he said. | "Quest for subscribers comes at a cost and success is not guaranteed," he said. |
Related Topics | |
Companies | |
Disney | |
Streaming |
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