News Disney announces strategic restructuring of media and entertainment divisions.

[HauntedPirate]

Disney to cut back on TV, sports biz in India

The move follows a global announcement of the company’s intention to reorganize its media and entertainment businesses to “focus on developing and producing original content for the company’s streaming services”

www.livemint.com

It increasingly feels like buying the Fox assets was a waste of money.

Iger's ego knows no bounds, nor was it encumbered by silly notions such as spending money wisely or investing in stupid theme park attractions for stupid people. Give the lemmings what they want, because that will make me... I mean, the company money! Those old dead guys didn't know anything with their silly, stupid attractions that didn't leverage IP.

 

[TrainsOfDisney]

So Hulu is losing a billion a year, and Disney+ is losing how much per year?

So the plan is to cut expenses at a profitable part of the company (parks) and invest in a not-profitable part of the company?

I don’t get the plan here.

 

[Slpy3270]

Disney to cut back on TV, sports biz in India

The move follows a global announcement of the company’s intention to reorganize its media and entertainment businesses to “focus on developing and producing original content for the company’s streaming services”

www.livemint.com

It increasingly feels like buying the Fox assets was a waste of money.

I mean, the writing was kinda on the wall after the failed UTV venture.

Disney's Bollywood presence is more established now under Star, but why double down on a risk that didn't pay off the first time? It's also why Disney won't bother going back to video games.

 

[MisterPenguin]

Disney to cut back on TV, sports biz in India

The move follows a global announcement of the company’s intention to reorganize its media and entertainment businesses to “focus on developing and producing original content for the company’s streaming services”

www.livemint.com

It increasingly feels like buying the Fox assets was a waste of money.

It was by buying Fox that gave Disney access to the Indian market through hoststar.

 

[MisterPenguin]

So Hulu is losing a billion a year, and Disney+ is losing how much per year?

So the plan is to cut expenses at a profitable part of the company (parks) and invest in a not-profitable part of the company?

I don’t get the plan here.

You're not accounting for the pandemic nor the long game.

 

[Slpy3270]

It was by buying Fox that gave Disney access to the Indian market through hoststar.

Star India is a lot more than Hotstar. Without sports and Bollywood Hotstar would be worthless. Disney seems interested only in their infrastructure and nothing more (which I've assumed was the case since the beginning).

You're not accounting for the pandemic nor the long game.

Even if streaming was profitable within a year or so and had like 300 million subscribers worldwide it would still not reach the profit levels of TV networks, consumer products, studios and parks.

Tomorrow is Netflix's earnings report. If revenue, subscriber numbers and profits don't receive the smashing numbers analysts are targeting (and there's good reason to believe that a miss is possible, since streaming hours are starting to decline) then streaming might not be the future media conglomerates are hoping for.

 

[TrainsOfDisney]

You're not accounting for the pandemic nor the long game.

Is the long game losing money on streaming?

 

[Sorcerer Mickey]

So Hulu is losing a billion a year, and Disney+ is losing how much per year?

So the plan is to cut expenses at a profitable part of the company (parks) and invest in a not-profitable part of the company?

I don’t get the plan here.

The plan is to become a major tech company, and 9 times outta 10, tech companies have trouble turning a profit. Look at Uber.

 

[Slpy3270]

The plan is to become a major tech company, and 9 times outta 10, tech companies have trouble turning a profit. Look at Uber.

No. They're trying to be the last traditional media company standing, not selling out to telecoms and tech companies like Columbia, NBCUni and Time Warner did (and possibly ViacomCBS as well at some point).

Thus far that strategy is proving quite successful, in large part because they actively promote synergy between the divisions. Look at how many ads Disney's linear networks are airing of each others' properties, especially Disney+ and Hulu.

 

[UNCgolf]

It's also why Disney won't bother going back to video games.

Which is incredibly stupid (if they don't ever go back to video games, although I think they will eventually). There's far more money in video games now than in movies/TV.

 

[Parker in NYC]

Which is incredibly stupid (if they don't ever go back to video games, although I think they will eventually). There's far more money in video games now than in movies/TV.

Especially now, since most are stuck at home. If they're so hellbent on streaming, a lot of us are also gaming more than ever.

 

[Slpy3270]

Which is incredibly stupid (if they don't ever go back to video games, although I think they will eventually). There's far more money in video games now than in movies/TV.

If history is any guide, media conglomerate strategy and video games are fundamentally incompatible.

Time Warner (as Warner Communications) made a bet on the video game industry during its infancy when they bought Atari. Under Warner, Atari's strategy was to mass produce games and sell them as cheaply as possible. Sometimes there were more game cartridges than consoles to play them on.

Guess what? It destroyed the industry in North America and it took the Japanese, who knew better, to rescue it.

 

[Slpy3270]

Especially now, since most are stuck at home. If they're so hellbent on streaming, a lot of us are also gaming more than ever.

And yet no media conglomerates or streamers are taking advantage of it. In fact, WarnerMedia, the only conglomerate with a video game publisher right now, may end up dumping it anyway if AT&T's obsession with decreasing their debt load is too much to ignore.

 

[UNCgolf]

If history is any guide, media conglomerate strategy and video games are fundamentally incompatible.

Time Warner (as Warner Communications) made a bet on the video game industry during its infancy when they bought Atari. Under Warner, Atari's strategy was to mass produce games and sell them as cheaply as possible. Sometimes there were more game cartridges than consoles to play them on.

Guess what? It destroyed the industry in North America and it took the Japanese, who knew better, to rescue it.

The video game industry back then wasn't really comparable to today, though. Atari sold something like 30 million consoles, which is a relatively big number, but the Playstation 4 has sold well over 100 million. There are also Xbox and Nintendo Switch sales, and the PC gaming market on top of that. The video game industry dwarfs the movie industry in revenue today.

Plus, as you mentioned, Time Warner bought Atari itself. They were making the hardware as well as the software. Disney only needs to produce software.

None of the other media conglomerates have the sheer quantity of video game ready IP that Disney has.

 

[ImperfectPixie]

The video game industry back then wasn't really comparable to today, though. Atari sold something like 30 million consoles, which is a relatively big number, but the Playstation 4 has sold well over 100 million. There are also Xbox and Nintendo Switch sales, and the PC gaming market on top of that. The video game industry dwarfs the movie industry in revenue today.

Plus, as you mentioned, Time Warner bought Atari itself. They were making the hardware as well as the software. Disney only needs to produce software.

And that doesn't count the HUGE industry that is mobile gaming.

 

[MisterPenguin]

Is the long game losing money on streaming?

Yes. Originally they projected that 2023 would be when D+ would start making a profit. They're way ahead of schedule... even before the pandemic, which only accelerated their timeline.

 

[Slpy3270]

None of the other media conglomerates have the sheer quantity of video game ready IP that Disney has.

Apparently you were out of the loop when WB bought Midway in 2009, which came with their lucrative Mortal Kombat franchise and a huge archive of arcade classics.

 

[Sirwalterraleigh]

So Hulu is losing a billion a year, and Disney+ is losing how much per year?

So the plan is to cut expenses at a profitable part of the company (parks) and invest in a not-profitable part of the company?

I don’t get the plan here.

Haven’t been watching the news, have ya, Rip??

You're not accounting for the pandemic nor the long game.

Yep...that’s the news I was talking about

 

[UNCgolf]

Apparently you were out of the loop when WB bought Midway in 2009, which came with their lucrative Mortal Kombat franchise and a huge archive of arcade classics.

I wasn't. Those franchises aren't even remotely close to Marvel and Star Wars in IP value for video games.

Most people playing games today don't care care about arcade games from the 80s and 90s. It's not that you couldn't make money from them -- it's that you wouldn't make nearly as much as Disney could from good Star Wars and Marvel games (among other things).

 

[Slpy3270]

I wasn't.

Those franchises aren't even remotely close to Marvel and Star Wars.

Try naming a game from either franchise that has had as much of a cultural impact as Mortal Kombat.

Hint: There's none.

Also, video games based on licensed properties are almost always terrible, and any bad game could significantly damage the IP value for years. Why else do you think everything has gone downhill for Superman since the nightmarish N64 game?