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Disney’s Q2 FY23 Earnings Results Webcast
- Thread starter DCBaker
- Start date
Q: How can D+ offer less content but expect subs to grow?
A: D+ has been flooded with great, good, mediocre, and bad content in the mad competition between streamers as to who can get the most new content on their streamers regardless of quality. The deluge of content was supposed to constantly increase subs.
It did, for a while. But with pandemic lockdowns over, people had less time to watch all that "Peak TV."
Both Disney and Netflix realized that throwing a lot of junk at a streamer doesn't necessarily mean more subs. Netflix had 2 quarters of rather significant sub loss before recovering and becoming profitable again.
And so the money spigot of billions and billions of dollars splurged on the streamers is being cut back... by all the streamers.
And so, with all the analytics the streamers have over who is watching what, all the streamers, including Disney, are going to cut back on the type of shows which are of poor quality and/or doesn't affect subs/churn.
The streamers could have gotten where they are today without all that dross hardly any one watches or likes.
So, by cutting out the poor quality shows or the niche shows with small audiences, the streamers can continue to grow with good, core, popular content.
Disney has an advantage in that they have so many major movie releases in theaters that wind up on their streamer. The other streamers do not have as many major movie titles winding up on their streamers because they don't own 10 studios like Disney does.
Also, cord cutting continues (from cable TV). Even if streaming is just as expensive, it has the advantage of video-on-demand and deep libraries and the ability to easily pause subs for a while.
To put it in a way that theme-parkers can understand: Just like the Guest Satisfaction Surveys for MK improved by *removing* SGE, so will satisfaction for streamers grow with getting rid of the poor quality / unliked shows.
A: D+ has been flooded with great, good, mediocre, and bad content in the mad competition between streamers as to who can get the most new content on their streamers regardless of quality. The deluge of content was supposed to constantly increase subs.
It did, for a while. But with pandemic lockdowns over, people had less time to watch all that "Peak TV."
Both Disney and Netflix realized that throwing a lot of junk at a streamer doesn't necessarily mean more subs. Netflix had 2 quarters of rather significant sub loss before recovering and becoming profitable again.
And so the money spigot of billions and billions of dollars splurged on the streamers is being cut back... by all the streamers.
And so, with all the analytics the streamers have over who is watching what, all the streamers, including Disney, are going to cut back on the type of shows which are of poor quality and/or doesn't affect subs/churn.
The streamers could have gotten where they are today without all that dross hardly any one watches or likes.
So, by cutting out the poor quality shows or the niche shows with small audiences, the streamers can continue to grow with good, core, popular content.
Disney has an advantage in that they have so many major movie releases in theaters that wind up on their streamer. The other streamers do not have as many major movie titles winding up on their streamers because they don't own 10 studios like Disney does.
Also, cord cutting continues (from cable TV). Even if streaming is just as expensive, it has the advantage of video-on-demand and deep libraries and the ability to easily pause subs for a while.
To put it in a way that theme-parkers can understand: Just like the Guest Satisfaction Surveys for MK improved by *removing* SGE, so will satisfaction for streamers grow with getting rid of the poor quality / unliked shows.
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Nubs70
Well-Known Member
But.... it's an untapped market with exponential growth opportunity
Slpy3270
Well-Known Member
Look up who founded CalArts.
brb1006
Well-Known Member
There is an upcoming book titled "The House of Mouse: Bob Iger and the Fight for the Soul of Disney" by Robbie Whelan (aka "Bob vs Bob Book" in the works.
DonniePeverley
Well-Known Member
At the risk of reading through 26 pages can someone give me a synopsis as to what is going on ? Most importantly does this mean the Yeti will be fixed?
mightynine
Well-Known Member
Only way the Yeti gets fixed is if it’s part of a multi-part documentary series on Disney+.
JoeCamel
Well-Known Member
Yes and No
CastAStone
5th gate? Just build a new resort Bob.
Disney reported earnings. They made a whole bunch of money, but also not enough money. Disney Plus did a lot better than last quarter but also did the worst it ever has. US Parks made a bazillion dollars and also Disney is setting expectations that they will never sell another ticket now that the 50th is over. Linear networks did very poorly, and there’s no but there. They also continue to own most of Hulu and ESPN.
The stock did bad after.
Tha Realest
Well-Known Member
No. The pixie dusters here will say stuff like the Yeti will never get fixed because Disney is suffering and we’re bad people for cheering this stock drop, yet never acknowledge they didn’t do stuff like fix the Yeti during the salad days of “record revenues” and bursting capacity.
Can you give me an idea of what content specifically Disney thinks is going to continue to grow subscribers ?
Just quoting you to bring back to this topic.
We don't have Nintendo, we are an x-box family, brother-in-law works for Microsoft.
Along the lines of the type of gameplay, we really like Hollow Knight and Ori, they are really fun games.
If you have an x-box.
Oh gosh and I forgot Unravel! That's great too.
I'm gonna pass on being trolled into a back-and-forth over what is and isn't good on D+.
That isn’t my intention.
My question was going to be -
If your answer is : Movies - Star Wars - Marvel
Is that enough to sustain D+ and drive growth?
If that’s not enough what else will play a major factor ?
Bluey
PJ Mask
Puppy Dog Tales
Mickey & Friends (the series aimed at small children)
Frozen(s)
Coco
Encanto
Moana
Certain animated films watched several times a day by pre-schoolers (and some adults)
That's enough to make D+ a must-have for families with children.
Star Wars and Marvel for the adults.
It's not everyone's cup of tea, but for those who like it, they'll stay subbed.
At this point it's not about growing number of subs. Sooner or later your product reaches saturation. Netflix was hitting is U.S. saturation point last year.
It's about getting those who want the product to pay enough to make it profitable. So, there will be price creep until a tipping point is hit. And even then, there's the lower priced ad-supported tier to catch those for whom top tier is too expensive.
It's enabling Netflix to currently be profitable.
Another question - I keep pestering you because your knowledgeable on the subject
I keep hearing YouTubers complaining that ad revenue is collapsing because advertisers do not want to spend.
Is this going to effect ad tier streaming ?
Casper Gutman
Well-Known Member
I am just about the biggest MCU fan you’ll find, and I love SW and Disney animation as well.
But…
Particularly with the frequency of MCU content slowing, the lack of diverse offerings on D+ has me convinced I’ll cancel as soon as Secret Invasion ends. I’m basically their target audience, and I think they need to significantly broaden their offerings.
Or just slap the whole Fox catalog up there, which was a key reason Disney bought that studio. That would keep me on board.
TheMaxRebo
Well-Known Member
It's obviously easier said than done, but finding a hit show that isn't Star Wars or MCU would really help but nothing they have tried so far has worked
We'll know this week. Disney has their 'up fronts' this week.
It's like Tindr for advertisers and content creators.
I wish more people would have given Mysterious Benedict Society a chance.
It was truly excellent.