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Disney's Streaming Services: Disney+ (and Hulu, ESPN+, Star, & hotstar)
- Thread starter MisterPenguin
- Start date
Bob Iger announced on the earnings call that Disney will begin offering a one app experience that will incorporate Hulu within Disney+.
Bob also announced a higher price for the Disney+ ad-free tier is coming later this year. The Disney+ ad-tier will also launch in Europe by the end of the calendar year.
Bob also announced a higher price for the Disney+ ad-free tier is coming later this year. The Disney+ ad-tier will also launch in Europe by the end of the calendar year.
MagicHappens1971
Well-Known Member
Iger announced today that Hulu will be integrated into Disney+. Looks like they won’t be selling it off
Disney Irish
Premium Member
Well the writing has been on the wall for a long time….
doctornick
Well-Known Member
Without listening to the call, did he specifically say that "Hulu" will be integrated. Or that all the streaming would be integrated into D+?
I ask because the former means keeping Hulu. the latter could involve selling Hulu and its original content but integrating any other adult content (stuff from Fox or ABC, etc) and ESPN+ into Disney+.
MagicHappens1971
Well-Known Member
His words were Hulu will be integrated into Disney+. I’m just glad we can shut down these rumors they they were going to sell off Hulu. To be honest I don’t know who would buy Hulu at this stage in the game anyway. Disney would retain all of their owned content, FX, ABC, etc. All they’d be buying is the infrastructure.
Disney Irish
Premium Member
Now if only someone would have predicted this was coming almost 4 years ago…
Here's a fuller answer from Bob on what the plan is for Hulu (via the captions on the call).
It's not really been fully determined what will happen in that regard. Except that as we look more and more at the growth or the future of our streaming business, and I mentioned at the first earnings call that I did after I came back that everything was on the table and in fact everything was on the table but I have now had another three months to really study this carefully and figure out what is the best path for us to grow this business and it is clear that a combination of the content that is on Disney plus with general entertainment is a very positive, is a very strong combination.
From a subscriber perspective, from a subscriber acquisition subscriber retention perspective and also from an advertiser's perspective. So where we are headed is for one experience that would have general entertainment and Disney plus content together for the reasons I just described. How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of the basically a conversation or negotiation that we have with them.
I don't want to be in any way predictive in terms of when or how that ends up. I can say we have had some conversations with them already they have been cordial and they are aimed at being constructive but I can't tell you and I can't really say where they end up, only to say that there seems to be real value in having general entertainment combined with Disney plus and ultimately Hulu is that solution. We are bullish about that.
It's not really been fully determined what will happen in that regard. Except that as we look more and more at the growth or the future of our streaming business, and I mentioned at the first earnings call that I did after I came back that everything was on the table and in fact everything was on the table but I have now had another three months to really study this carefully and figure out what is the best path for us to grow this business and it is clear that a combination of the content that is on Disney plus with general entertainment is a very positive, is a very strong combination.
From a subscriber perspective, from a subscriber acquisition subscriber retention perspective and also from an advertiser's perspective. So where we are headed is for one experience that would have general entertainment and Disney plus content together for the reasons I just described. How that ultimately unfolds is to some extent in the hands of Comcast and in the hands of the basically a conversation or negotiation that we have with them.
I don't want to be in any way predictive in terms of when or how that ends up. I can say we have had some conversations with them already they have been cordial and they are aimed at being constructive but I can't tell you and I can't really say where they end up, only to say that there seems to be real value in having general entertainment combined with Disney plus and ultimately Hulu is that solution. We are bullish about that.
doctornick
Well-Known Member
Well, that brings up a separate question to me: wouldn't Disney have to buy out Comcast from Hulu first before integrating it to D+? Which isn't necessarily going to happen until early 2024 (though I guess Comcast could agree to sell sooner)?
Second question is how this would work for the Hulu Live TV.
"Disney will be yanking content from streaming as it rethinks its costs and strategy, and is looking at a content impairment charge of $1.5 billion to $1.8 billion as it does.
“We are in the process of reviewing the content on our DTC services to align with the strategic changes in our approach to content curation,” said CFO Christine McCarthy on the company’s post-earnings call.
“As a result, we will be removing certain content from our streaming platforms, and currently expect to take an impairment charge of approximately $1.5 to $1.8 billion. The charge, which will not be recorded in our segment results will primarily be recognized in the third quarter as we complete our review and remove the content.”
She didn’t specify any programming.
But, she said, “going forward, we intend to produce lower volumes of content in alignment with this strategic shift.”"
deadline.com
“We are in the process of reviewing the content on our DTC services to align with the strategic changes in our approach to content curation,” said CFO Christine McCarthy on the company’s post-earnings call.
“As a result, we will be removing certain content from our streaming platforms, and currently expect to take an impairment charge of approximately $1.5 to $1.8 billion. The charge, which will not be recorded in our segment results will primarily be recognized in the third quarter as we complete our review and remove the content.”
She didn’t specify any programming.
But, she said, “going forward, we intend to produce lower volumes of content in alignment with this strategic shift.”"
Disney Pulling Some Content Off Streaming In Strategic Rethink
Bob Iger and CFO Christine McCarthy talked cost cuts and strategy shifts to reach profitabilty.
deadline.com
Disney Irish
Premium Member
Technically since Disney is majority owner, and contractually 100% in-charge, of Hulu they could have integrated at any time that content contracts would have allowed.
Logistically how that would have worked in providing Comcast their share of revenue, who knows.
But given that this is now official on integrating the bundle into D+, then its just a matter of formally getting Comcast to sell their share which can happen at any time. And based on Bob's comments it looks like those talks may have started.
I suspect for now that Hulu Live TV will be that standalone offering that was mentioned. In the future though I suspect that too will be rolled into D+ as contracts get redone for distribution.
Phroobar
Well-Known Member
So less classic Disney animation & live action and more cheap outsourced shows."Disney will be yanking content from streaming as it rethinks its costs and strategy, and is looking at a content impairment charge of $1.5 billion to $1.8 billion as it does.
“We are in the process of reviewing the content on our DTC services to align with the strategic changes in our approach to content curation,” said CFO Christine McCarthy on the company’s post-earnings call.
“As a result, we will be removing certain content from our streaming platforms, and currently expect to take an impairment charge of approximately $1.5 to $1.8 billion. The charge, which will not be recorded in our segment results will primarily be recognized in the third quarter as we complete our review and remove the content.”
She didn’t specify any programming.
But, she said, “going forward, we intend to produce lower volumes of content in alignment with this strategic shift.”"
Disney Pulling Some Content Off Streaming In Strategic Rethink
Bob Iger and CFO Christine McCarthy talked cost cuts and strategy shifts to reach profitabilty.
Disney Irish
Premium Member
Probably pulling more the recent stuff in order to push it out to the PVOD market.
The classic stuff isn't very monetized outside of D+, so wouldn't make sense to pull it.
Disney Irish
Premium Member
For now.....
Big_Shakalaka
Well-Known Member
So, they wouldn't be doing this if they were seriously considering selling off Hulu to Comcast or another company. Also, an all in one app without ESPN...
Big_Shakalaka
Well-Known Member
Could Hulu just become streaming live TV only? All other content is stripped out and moved to Disney+ and Hulu is just a linear TV app. Also makes it more viable to sell off if anyone wants it.
Serpico Jones
Well-Known Member
“The best days of Disney are behind it. This is a fiercely competitive environment and they can’t compete with the Netflix and Amazon spending” -DisneyWar author James B. Stewart on CNBC
Disney has been and continues to outspend Netflix on content. Last year Netflix made a huge pivot in cutting back spending on a deluge of content -- which Disney is going to do... in 2024. The rest of 2023 has contractual obligations.
Disney hasn't priced their subscriptions as high as Netflix yet. When they do, it will be profitable, like Netflix is.
Amazon doesn't provide a meaningful comparison because it's an add-on to their Prime subscription and they've been using it as a loss-leader, and probably will continue to so for a long while.