Some forms may be, but generally no, it isn't safe to have live entertainment.
Edit-It also seems like you are going to shoot down every idea I mention so what’s the point?
Gotta admit.... I'm beginning to sense a death spiral .
1) Disney lays off major numbers of CMs - customers chose to not come, due to severely reduced staff...
2) Disney notes the lack of traffic.... and fires more staff ....
Not sure this will end well, for Disney....
I never said Disney is doomed.Sorry I must be wrong... Disney is doomed. Happy Thanksgiving.
I assume by status quo, you mean the continuation of his business tactics.That’s because Iger wants his status quo...which is frankly bad park stewardship. He won’t have that kinda pull moving forward
Disney grossly underestimated its size and growth. That was done intentionally so they could crush the numbers and then Covid19 helped speed it up a bit. Since they had 25 million customers in their first quarter, no one can say they didn't intentionally low ball their expectations.Wasn’t there something saying that Disney + wouldn’t start making profit until year 3?
So while it’s technically “making money”, it hasn’t replenished what they’ve spent on it. It’s seems like a good accounting trick to make it look like 2020 hasn’t been as bad as it has.
A few things:Disney grossly underestimated its size and growth. That was done intentionally so they could crush the numbers and then Covid19 helped speed it up a bit. Since they had 25 million customers in their first quarter, no one can say they didn't intentionally low ball their expectations.
Now on the profits and asset level. Disney+ may or may not own it's original productions. That is an accounting issue of where the profits and assets are applied within the company. It is a fact that they royalties paid to the studios for their libraries are an expense to Disney+ and an revenue source to the studios. This money will keep the studios extremely profitable for years to come. The only question is how much of the $4.52 RPU per month does Disney+ pay the studios? At the end of the quarter they had 73.7 million subscribers. So is Disney paying $1.00 a month to the studios or $2.00 a month. How much does it cost to operate Disney+ a month? They are probably paying Roku and other bundlers 20% or $0.90 a month per customer. On top of thaw t Disney does plan on spending several more billions a year on new shows, but remember shows are not an expense unless they are owned by the studios. It is that reason, I expect the full ownership of all the shows to owned by the studios. That way Disney+ can write off the full cost of production against their revenues and help the studios fund all their production costs.
Anyway, Disney+ will soon have over 100 million subscribers and 200 million worldwide by the end of 2025. Add in just under 50 million more US Hulu subscribers and hundreds of millions more Hotstar subscribers in Asia and we will see how smart it was to build this worldwide streaming operation.
Disney+, Hulu and Hotstar will more than make up for the loss of business from the parks. The 3 alone will also be worth more than the Netflix's marketcap. Hulu, ESPN+ and Disney+ currently have annual revenues of over $13 billion but that leaves out Hotstar and its hundreds of million streaming customers in India and Indonesia, plus they are expanding and even have customers in the US paying $44.99 a year. The future of streaming and the company's profits are in Asia even if China refuses to open up its streaming market. That is the real reason Disney sent all that money on Fox, the crown jewel was Hotstar and Fox's business in Asia.
The RPU is straight from the reports.A few things:
1. Where are you getting these numbers from? Not that I don’t believe you, but the prediction of 200 million subscribers...where is that from?
2. Subscribers come and go. Many just subscribed for the period of the Mandalorian rollouts. Not everyone is sticking around.
3. Nobody is saying Disney + was a failure, or a mistake. Just that it’s success isn’t quite making up for the losses of the Parks. Unless you have reports that their initial 3 year break even plan was greatly overestimated, and they started making profit in less than a year.
Disney + will likely pay off, but they can’t solely rely on it just yet.
Cumulatively, absolutely they will. At once? That’s a different story.I don’t think they will ever reach that but it’s impossible to predict the future.
Oh yes I meant all at once.Cumulatively, absolutely they will. At once? That’s a different story.
And I suppose that would be another question regarding the statistics. Are we looking at number of subscriptions purchased in the service’s lifetime? Or at once? Do we include repeat subscribers? 3 month subscribers in the same class as 12 month subscribers?
It becomes a more complicated statistic the more you look into it
See my above post. It’s less about number of subscriptions, and more about “money earned”.The RPU is straight from the reports.
Dusney+ is $4.53
ESPN+ is. $4.59
Hulu is. $12.59
Hulu with TV is $71.90
The customer count
Disney+ 73.7 million
ESPN+ 10.3 million
Hulu. 32.5 million
Hulu w TV. 4.1 million.
Now hotstar isnt reported separately and I wish I had those numbers. I can tell you I gave a friend a yearly subscription for $44.99. It also only cost $1.00 a month in India for the plain Hotstar service. All the number I gave are public except how much Disney+ pays the studios.
On to their saying Disney+ would lose money until 2024 when they expected 60 to 90 million customers and would reach profitability. They said in their conference call they ended the quarter with 73.7 million customers and would provide an update in December at their media day. They had already been marketing in Latin America for their opening of service there. Those numbers will be given shortly. Disney should announce at that event that Disney+ is now profitable after only 1 year of service. Now, I know they lost money i. their first 12 months of service, everyone knows that. What I have been saying in from October 2020 onward, it is clear unless they completely lied about their expenses that Disney+ is profitable on its Division accounting and that compared to what Netflix was paying Disney it was additive to profits earlier.
Yes. So that’s where my confusion comes in on Disney’s statement. Is it “we have 70 million subscribers at this moment in time”? Or is it “we’ve had 70 million subscribers since the launch of the service”?Oh yes I meant all at once.
Streaming is going to be really interesting to watch in the next few years.
They has 73.7 million paying customers at the end of the quarter. They have had many more because there have been some that dropped the service.Yes. So that’s where my confusion comes in on Disney’s statement. Is it “we have 70 million subscribers at this moment in time”? Or is it “we’ve had 70 million subscribers since the launch of the service”?
A reputation that he, to be honest, doesn't deserve.Combine the Chapek reputation with the uncontrollable failures of this year, and you have a CEO reign that will look increasingly worse than what preceded it. There is very little chance of Iger’s reputation getting “Iger’ed”, like Eisner’s reputation. Regardless of how great the next CEO is, the general audience will look fondly on Iger, and he will be consider one of the greatest company executives for the rest of his lifetime.
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