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Disney's Streaming Services: Disney+ (and Hulu, ESPN+, Star, & hotstar)
- Thread starter MisterPenguin
- Start date
Jedijax719
Well-Known Member
Of all the projects announced (and I am mainly a Star Wars fan) the one that makes me most intrigued and excited is the Iwagu series. But I am also stoked for Obi-Wan and the Acolytes series. Next is probably Ms. Marvel.
Is Disney just dumping a whole lot of titles or do they/can they actually plan to get all of these out?
Is Disney just dumping a whole lot of titles or do they/can they actually plan to get all of these out?
They plan to roll out 100 titles a year.
They now have four "volumes" worldwide to shoot movies that require heavy SFX. They have 4 animation studios, and about eight live action studios they directly control -- not to mention ILM. Plus, they can continue the practice that they and many media companies do in bankrolling or buying content from dozens and dozens of independent studios (the Netflix model).
They plan to spend billions as a loss-leader until the worldwide infrastructure is fully in place and they've saturated all markets. At that point, their streamers will be profiting billions.
So, they only way to get to that promised land of billions is a constant barrage of new content to hook customers. That's their plan, and if they fall behind, the investors will berate and harangue them for not fulfilling their promise.
You do not understand business and profits. Disney+, Hulu, Star and ESPN are distribution companies that will be paying the Disney Studios for their libraries and to develop new shows. The monthly payments for the library is the real profit. All anyone has to do is look at the revenue Disney is receiving from the streaming services, subtract what they are paying for new contact and a reasonable amount for operations and you will see Disney+ maybe losing money but Disney Streaming is making the company money and will soon be making a fortune. Otherwise. why would the market cap of the company be 315 billion?
Yeah, I do understand. Good day.
I am sorry, I didn't realize it was you that wrote that. I usually respond to the post without paying too much attention to who wrote it. I know you are well aware of how this works. You are right though that setting up Disney+ cost Disney some money at first, but I contend and I believe Wall Street agrees with me that from now on Disney is making a real profit by having their unbelievable worldwide streaming business. Especially in India and Asia. That is why they purchased Fox.
One last thing. Do you think Disney is on the money with their estimates of 2024 subscribers? Were the optimistic or conservative?
Okay, then... if Disney has already reached their five year projections at which time the streamers were supposed to be profitable, then where do those profits show up on last quarter's financials?
Christine's presentation was basically to warn investors that the streamers will still not be profitable until 2024 because they're still sinking billions and billions into building the international infrastructure and churning out 100 titles' worth of content.
If the streamers were profitable on their own, right now, don't you think they'd be crowing about it?
Loving all the new content! I gotta say, I was pretty skeptical adding yet another streaming service to my collection but now that my kids are getting older, they really enjoy it. I’m personally excited for the tiana series. I hope the cars once is decent because my son won’t watch anything other than the first one (we watch it at least twice a week 
). I also think Ecanto looks really good.
). I also think Ecanto looks really good.The streaming profits show up in the Studios profits. By looking at their financial statements, look at the exclusions. That is money that has to be removed because it is transferred from one division tp another. Disney+ has to report all the money they receive from streaming customers and subtract all their expenses, including payments for the library. The Studios then have to report all their revenue, including what they receive from Disney+, Hulu, Hotstar, etc. The problem is that you can't count the same money twice, so they subtract it at the company level.
Now, what does this mean? It means if a company owns everything, they can decide where to apply the profits but they legally have to pay a reasonable fee for their movies because of third party contracts the Studios have with actors, directors and others. The Studio has a fiduciary responsibility to make as much money as possible so they needed to receive more money from Disney+ than they did from Netflix. Further, we all know Hollywood accounting is crazy and that if a movie costs 100 million, that includes a profit on every step. For example, ILM makes a profit on all their work for any movie. They do not charge just what it costs. Another example is the Studios Advertising Division not only bills the cost of the advertising to the individual movie but a profit for their work. Then. the commercials they buy on Disney owned networks are a profit center for the company and no one knows if they charge Disney movies more than non Disney movies. Accounting is crazy but the bottom line is the same. No company can lie on the final bottom line. Profits are all income the company receives minus all money the company pays to others. not money it pays itself.
As for last quarters loss. The company reported a loss of $1.098 billion for themeparks but only a loss of $710 million from continuing operations. How could the studios have had a profit of $419 million when the box office receipts plummeted? The profits came from the 456 million transferred from Direct to consumer Division. Eliminations for the full year went from $1.958 billion last year to $6.11 billion this year. That is from the worldwide streaming growth.
Going forward, Disney's streaming business was up 13% in just 2 months so for the full quarter it should be 15% to 20% increasing revenue from 4.9 billion to over 5.5 billion for the quarter. Based upon the rate increase in Canada and Europe beginning early next year and the US in March, they should easily pass 6.5 billion in the first quarter on 2021. With the growth rates they have had and continues rollout of services plus rate increases, I could easily see the streaming services bring in over $8 billion a quarter by the end of Disney's Fiscal year.
Jedijax719
Well-Known Member
Okay I have to admit that I don't understand business (to this level) at all. My very simple-minded question would be if Disney + will help Disney recoup lost money from this past horrible year (and whatever next year's damage will be)?
And I guess it sort of was answered but my simple-mindedness doesn't comprehend. Can Disney pull off putting all of its announced titles out through 2023 as planned? That's a LOT of writers and a LOT of actors and a LOT of episodes.
And I guess it sort of was answered but my simple-mindedness doesn't comprehend. Can Disney pull off putting all of its announced titles out through 2023 as planned? That's a LOT of writers and a LOT of actors and a LOT of episodes.
MarvelCharacterNerd
Well-Known Member
My equally simple interpretation would be that while the company is 'losing money' through their expenditures and money not coming in (closed parks, cruises, theaters), they are 'gaining value' as the investors raise the stock price as a reward for liking where the company is going in the future (streaming/DTC).
So yes, in that way it seems that Disney+ is helping the company even while 'losing money'/not yet bringing in a profit.
But I'll leave it to the much more business-savvy folks to confirm if I 'splained that right!
Disney+ cannot make up for this horrible year. Nothing can. The money lost will never be recovered and they and everyone else will have to pay more in taxes to pay for the aid the government did give.
As for the shows and movies they announced, of course, if Disney+, Hulu, Star and ESPN+ can come close to the growth they are predicting they can afford to make everything they announced and more. Again, Disney purchaded Fox and besides the 5 year lease for the Fox lot in California, they got the Fox studios in Australia and India. Disney has the facilities, the leases of studio space in Georgia and the UK. Money is not a problem because the streaming fees Disney's multiple streaming services pay will pay for all the new shows and movies. The money is there and even better for Disney, AT&T has totally ed off everyone in Hollywood.
You do have a better understanding than you claim. Disney+ has boosted the value of the company. In some ways Disney keeps talking about Disney+ in a general way, when they actually mean all their streaming services. The one thing I wish they would do, now that they added Star to Disney+ in most countries, is bring in most Hotstar to Hulu and the Cricket games to ESPN+. That would add value to both services and justify the next round of rate hikes. Again, think of each of the Divisions of the Walt Disney Company as separate companies, each of which must make a profit. In the last quarter only 2 lost money and everyone made money. Parks and Resorts were obviously going to lose money with all parks being closed or at a severely reduced level. Most people expected the Studios to lose money with theaters closed and most intelligent people not going. But, the studio's made money from the 459 million the streaming services paid them. Netflix was only paying 150 million a quarter prior to the launch of Disney+.My equally simple interpretation would be that while the company is 'losing money' through their expenditures and money not coming in (closed parks, cruises, theaters), they are 'gaining value' as the investors raise the stock price as a reward for liking where the company is going in the future (streaming/DTC).
So yes, in that way it seems that Disney+ is helping the company even while 'losing money'/not yet bringing in a profit.
But I'll leave it to the much more business-savvy folks to confirm if I 'splained that right!
Jedijax719
Well-Known Member
How does the price increase affect those who paid for the year up front already?
And is the HULU package the live HULU tv?
And is the HULU package the live HULU tv?
Those of us who have the 3 year plan will not see a price increase until after the 3 years are up. The bundle plan will probably see a price increase if the are monthly customers but if you paid for the annual plan you won't see an increase until your year ends. As for Hulu with live TV, their prices are about to go up $10 a month. I guess the cable networks increased their fees. This is why paying for a full year is a better deal and if Disney offers us another 3 year deal, I will jump on it.
Disney Analyst
Well-Known Member
Happy our annual comes out in November!
Captain Barbossa
Well-Known Member
Same. Glad I won’t have to pay that $80+ until next November.
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