Disney's Streaming Services: Disney+ (and Hulu, ESPN+, Star, & hotstar)

[MisterPenguin]

As to your question about how they recoup the 11-12 billion they 'spent'. Well yes that's 11-12 billion down the drain, but now they fully own a streaming service, twice the size of Hulu, for basically 1/6th the fair market value they are about to pay out for the remaining portion of Hulu.

Additionally, Disney will wind up with all of Hulu's profit, and not just 66% of it. The profit from Hulu will jump by 50% (going from 2/3 to 3/3).

And then if Hulu is subsumed into D+, well, then Hulu's profit is D+'s profit.

D+'s success has been slightly suppressed by Disney sending a lot of the new content they create to Hulu instead of D+. Imagine if all those successful Hulu shows were on D+. Well, they soon will be.

 

[Sirwalterraleigh]

Additionally, Disney will wind up with all of Hulu's profit, and not just 66% of it. The profit from Hulu will jump by 50% (going from 2/3 to 3/3).

And then if Hulu is subsumed into D+, well, then Hulu's profit is D+'s profit.

D+'s success has been slightly suppressed by Disney sending a lot of the new content they create to Hulu instead of D+. Imagine if all those successful Hulu shows were on D+. Well, they soon will be.

Disneys cost content will only increase…or the churn rate will be so high it will defeat the profit model anyway

The delicacy will be trying to increase sub and ad fees to eclipse costs/losses

It’s not impossible…but it’s a lot harder than people think. Which is probably why Disney avoided it forever.

And it’s out of Bob’s comfort zone

 

[Indy_UK]

And then if Hulu is subsumed into D+, well, then Hulu's profit is D+'s profit.

When there is no profit in Disney+ then Hulu is just being used like the park profits to minimise the losses?

If Disney merge Hulu into Disney+ (which I think they do do) like they have with Star internationally then where is the value in Hulu? Just the subscriber numbers?

I feel like they have to keep it separate because if they merge, Disney+ will get another hefty increase which may lead to subscriber drops?

 

[MisterPenguin]

Nielsen Streaming Top 10: ‘Suits’ Stays on Top, ‘Haunted Mansion’ Streaming Debut Takes No. 3 With Nearly 1 Billion Minutes Watched

Per Nielsen, 'Suits' was the the most-streamed title of the week for the 15th time, while 'Haunted Mansion' took third place with its streaming debut.

variety.com

 

[MisterPenguin]

Netflix and Disney+ Lead as Taiwan Adds SVOD Subscribers in Third Quarter – Study

Netflix and Disney+ lead the market as Taiwan SVOD subscribers leap in the third quarter of the year, according to a newly published study.

variety.com

 

[MisterPenguin]

When there is no profit in Disney+ then Hulu is just being used like the park profits to minimise the losses?

If Disney merge Hulu into Disney+ (which I think they do do) like they have with Star internationally then where is the value in Hulu? Just the subscriber numbers?

I feel like they have to keep it separate because if they merge, Disney+ will get another hefty increase which may lead to subscriber drops?

If there is a merger, I doubt the cost will be greater than the current packaging of the two.

 

[Disney Irish]

When there is no profit in Disney+ then Hulu is just being used like the park profits to minimise the losses?

If Disney merge Hulu into Disney+ (which I think they do do) like they have with Star internationally then where is the value in Hulu? Just the subscriber numbers?

I feel like they have to keep it separate because if they merge, Disney+ will get another hefty increase which may lead to subscriber drops?

Hulu is part of Disney's DTC along with D+, so when its talked about profits/losses its the combined for all of DTC not just D+ alone. The only difference will be after getting 100% of Hulu, they will be getting 100% of the profits instead of having to split out 33% to Comcast. Which actually might be enough to just propel DTC into profitability now.

 

[BrianLo]

Disneys cost content will only increase…or the churn rate will be so high it will defeat the profit model anyway

The delicacy will be trying to increase sub and ad fees to eclipse costs/losses

It’s not impossible…but it’s a lot harder than people think. Which is probably why Disney avoided it forever.

And it’s out of Bob’s comfort zone

What makes you say that? Isn’t this exactly how he has been accused of managing the parks? Containing costs and fleecing the consumer.

 

[MisterPenguin]

Hulu is part of Disney's DTC along with D+, so when its talked about profits/losses its the combined for all of DTC not just D+ alone. The only difference will be after getting 100% of Hulu, they will be getting 100% of the profits instead of having to split out 33% to Comcast. Which actually might be enough to just propel DTC into profitability now.

Disney does split out D+'s profit/loss from Hulu. That's how we can say Hulu is profitable and D+ is operating in the red.

When domestic D+ gets a Hulu or Star or HuluStar hub/tile within D+, then we can talk about their combined profit/loss.

E.g., in most places internationally, D+ has a Star tile/hub that is mostly Hulu content. And that Hulu-content on international D+ is considered D+. But, in the U.S., Hulu is still its own thang.

 

[Disney Irish]

Disney does split out D+'s profit/loss from Hulu. That's how we can say Hulu is profitable and D+ is operating in the red.

When domestic D+ gets a Hulu or Star or HuluStar hub/tile within D+, then we can talk about their combined profit/loss.

E.g., in most places internationally, D+ has a Star tile/hub that is mostly Hulu content. And that Hulu-content on international D+ is considered D+. But, in the U.S., Hulu is still its own thang.

Yes they break it out but when it’s discussed the 500M losses for FY23Q3 it’s always the combined for the entire DTC not just D+. And they break it out I believe primary due to the splits with Comcast.

What’s going to be more difficult is that, initially at least, when Hulu does merge into D+ in the “one app” Hulu will still be offered as a standalone service. So they will probably still be breaking out numbers at least for a bit.

 

[doctornick]

I still think it’s quite possible that they could merge the Hulu content into D+ (perhaps with the Star branding) while keeping the Hulu with Live TV service continuing.

I’m curious regarding Hulu’s profitability if that is driven more from the Hulu streaming (originals and other content) versus the more expensive but less subscribed Live TV service.

 

[Indy_UK]

I still think it’s quite possible that they could merge the Hulu content into D+ (perhaps with the Star branding) while keeping the Hulu with Live TV service continuing.

This is what I think they will do.

Adding star in the UK certainly added value to Disney+ and I can imagine Disney+ in the US maybe slightly lacking without

 

[Disney Irish]

I still think it’s quite possible that they could merge the Hulu content into D+ (perhaps with the Star branding) while keeping the Hulu with Live TV service continuing.

I’m curious regarding Hulu’s profitability if that is driven more from the Hulu streaming (originals and other content) versus the more expensive but less subscribed Live TV service.

They’ve already announced earlier this year they will have the “one app” for those on the bundle, with both D+ and Hulu. Hulu will be a tile just like Star is outside the US. And then those on LiveTv will still be separate for now.

So yes they will merge the content. Btw, this is what several of us have been predicting will happen since 2018/2019 when both the service was announced and the 21CF merger happened.

 

[John park hopper]

So how much revenue will this 8 billion dollar purchase generate Disney?

 

[BrianLo]

So how much revenue will this 8 billion dollar purchase generate Disney?

Hulu Revenue is currently a little under a billion a month. So a third would be a billion a quarter or 4 billion revenue per year as a one third share. Assuming there is no further growth in Hulu between now and then.

 

[DCBaker]

Christmas with Walt Disney will be available to stream on Disney+ beginning November 24.

Here's the description from a new press release.

“Christmas with Walt Disney” – November 24
In a Walt Disney Family Museum original production directed by Don Hahn, view Disney family home movies and holiday segments from Walt’s shorts and feature films as Walt’s daughter, Diane, shares her Christmas memories alongside Disney family home movies, holiday segments classic Disney films, and vintage Disneyland footage.

Deck The Halls With Disney+! Stream Beloved Classics And The Most Anticipated Premieres This Holiday Season

‘Tis the season to stream holiday classics and new Originals on Disney+! This holiday season, Disney+ is the streaming home for holiday favorites, new Originals, and the biggest premieres of the year! The Happy Holidays collection is back and more joyful than ever with exclusive new Originals...

press.disneyplus.com

 

[DCBaker]

News on streaming.

"Disney+ topped 150 million streaming subscriptions by the end of its fiscal fourth quarter of the year, up from 146.7 million in the previous quarter.

On Wednesday, Disney reported Core Disney+ subscriptions are at 112.6 million subs, as of the quarter ended Sept. 30, and Disney+ Hotstar is at 37.6 million.

Meanwhile, there are 48.5 million subscribers to Hulu and ESPN+ has 26 million.

Disney’s streaming business lost $387 million in Disney’s Q4."

Disney+ Tops 150 Million Subscribers, Streaming Loss Narrows to $387 Million

Disney reported its fiscal fourth-quarter 2023 earnings Wednesday, revealing Disney+ now totals 150.2 million streaming subscriptions

variety.com

 

[_caleb]

News on streaming.

"Disney+ topped 150 million streaming subscriptions by the end of its fiscal fourth quarter of the year, up from 146.7 million in the previous quarter.

On Wednesday, Disney reported Core Disney+ subscriptions are at 112.6 million subs, as of the quarter ended Sept. 30, and Disney+ Hotstar is at 37.6 million.

Meanwhile, there are 48.5 million subscribers to Hulu and ESPN+ has 26 million.

Disney’s streaming business lost $387 million in Disney’s Q4."

Disney+ Tops 150 Million Subscribers, Streaming Loss Narrows to $387 Million

Disney reported its fiscal fourth-quarter 2023 earnings Wednesday, revealing Disney+ now totals 150.2 million streaming subscriptions

variety.com

That’s a lot of subscribers. And the data/audience is worth a lot. But Disney has got to figure out how to get to profitability asap!

 

[DCBaker]

A beta version of an app with Disney+ and Hulu combined will be available to bundle subscribers in December, with an official launch in Spring 2024.

Disney+, Hulu Merged App to Launch Next Month for Bundle Subscribers, Bob Iger Says

Disney will launch a beta test of an app next month that combines Disney+ and Hulu into a single experience, CEO Bob Iger said.

variety.com

 

[Disney Irish]

News on streaming.

"Disney+ topped 150 million streaming subscriptions by the end of its fiscal fourth quarter of the year, up from 146.7 million in the previous quarter.

On Wednesday, Disney reported Core Disney+ subscriptions are at 112.6 million subs, as of the quarter ended Sept. 30, and Disney+ Hotstar is at 37.6 million.

Meanwhile, there are 48.5 million subscribers to Hulu and ESPN+ has 26 million.

Disney’s streaming business lost $387 million in Disney’s Q4."

Disney+ Tops 150 Million Subscribers, Streaming Loss Narrows to $387 Million

Disney reported its fiscal fourth-quarter 2023 earnings Wednesday, revealing Disney+ now totals 150.2 million streaming subscriptions

variety.com

So another ~25% reduction in losses, moving in the right direction.