If you're talking about the entire catalog of content being produced for D+ plus everything the Studios is making that went to D+, sure I would agree its losing money in order to boost subs in the long run.
Worldwide for all subs on D+ the ARPU is $4.35 as of the end of Q2FY22. That is $7.1B per year of revenue for D+ worldwide.
Thanks for mathing and googling.
Was just making the point that they're not getting $8/month average.
Yep its good to use the real numbers, but using the $8 was just to show that Disney can make money on D+ even by sending $200M films to it. As we know Disney wants both D+ revenue and BO revenue, but will sacrifice BO revenue as needed for D+ revenue.Thanks for mathing and googling.
I’m talking about the fact that company thinks it will be profitable in 2024. You may think it is profitable but Disney doesn’t.
I don't think the service as a whole is profitable yet, I would agree with their timeline projections given current sub growth, end of FY2024.
And I fully support that as I believe streaming is the future, not theatrical, which will become/is becoming like a concert experience - something people do once in a while as a splurge for something special, whereas they may listen to music all day every day on their mobile devices or in their cars for much cheaper.Yep its good to use the real numbers, but using the $8 was just to show that Disney can make money on D+ even by sending $200M films to it. As we know Disney wants both D+ revenue and BO revenue, but will sacrifice BO revenue as needed for D+ revenue.
A big box office is more than just the dollars it brings in. As long as D+ maintains its subscriber base, of course they'll ok. But getting that big box office hit, nets you some very important things. Disney LOVES its merchandising. And there's nothing better than a box office hit to get the hype and awareness for your movie to sell that merch. There aren't that many stream only movies that hit that pop culture phenomenon status. And creating those phenomenons are what help your legacy and keep you relevant.
I don't disagree that has been and will likely continue to be the model for the most part at least for the near term.
I still don't think that makes much sense. Why put any (theatrical level) film direct on D+? It was weird they did that for Turning Red and I think it would be odd to do it for anything that big - send it to theaters first, get some revenue from that, then put in on D+ later (personally I'd advocate for a 60 or even 90 day window but at least at the 45 day that they've set). I don't see the harm and you get upside of multiple sources for revenue. Does Disney think that large numbers of people are going to drop D+ because they can't see Turning Red until a few months after being in a theater?
Well that $32B is across all their linear properties and streaming, not just D+. So for example a show like Grey's Anatomy cost $20-30M per season, that is part of that. So add up all Disney produced shows and movies across all the Disney release points like ABC, D+, FX, Hulu, ESPN+, etc not to mention the shows they produce via 20th TV for other channels like NBC and you can see it adds up.
As I mentioned before, we know Disney wants both D+ revenue and BO revenue, but will sacrifice BO revenue as needed for D+ revenue.
I would agree, as a potential recession looms you'll see families cut down on not only external entertainment but on the number of services they have. As @MisterPenguin has rightfully said Disney is positioning D+ to be the number 1 or number 2 streamer at the end of the streaming wars. So if at the end of the day consumers have only D+ and Netflix then that is a huge win for Disney.
I think the magic of the bundle comes into play here. D+ alongside Hulu and ESPN+ for the less than most of Netflix's plans is a very nice deal with a wide and varied content library, and much like Netflix covers a very wide range of content especially if Disney continues to pull whatever content they can from Netflix (and others) and port it over to Hulu/D+ to further bolster their strong lineup.
Most confusingly to me will be Make Mine Music given its on the 60 animated features from WDAS. You would think at the very least it would be released piecemeal style with the noncontroversial shorts, but nope! I assume whatever is still in the vault may be to keep some subscriptions in the Disney Movie Club
