News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[JD80]

Let’s take your assertion as 100% valid and that Disney+ breaks even, better yet eeks out a profit sometime in FY 2024.

Does anyone expect that profit to be earth shattering? Does anyone expect D+ to be a continuing profit center with solid revenues going into the foreseeable future, as some had hoped?

Or does D+ hang around as a division that flounders in the middle depending on the quarter?

Does anyone think D+ can ever make back all that which was lost since its inception? Subscribers have peaked, subscriber pricing is maxed out, leaving the only factor affecting arpu being ad revenue, which doesn’t sound promising with stagnant subscriber numbers and low rated shows.

I don't expect the profit to be earth shattering in the next year, I just think it will be a net positive on the balance sheet by the end of the fiscal year.

Not sure why people think it's going to be this billion dollar profit machine right off the bat. This is a long term play at creating the next century of content distribution where they own the platform and control all the revenue centers. Who knows what the future holds, I think over time it will be massively profitable.

Hulu and D+ combined puts the platform at a good position in the market. The Prime Video numbers are funky(taking some notes from @CastAStone on Discord).

CastAStone:
There’s actually a callout with prime which is that Nielsen can’t yet split out what you’re watching on prime. So if you subscribe to PBS Kids or Noggin or Max through Prime and watch it in the Prime app it counts as prime here

 

[monothingie]

Not sure why people think it's going to be this billion dollar profit machine right off the bat. This is a long term play at creating the next century of content distribution where they own the platform and control all the revenue centers. Who knows what the future holds, I think over time it will be massively profitable.

The expectation was that DTC platforms like D+ would provide a platform which could leverage strengths in all segments within Disney to generate revenues that no competitor could even compete against.

It was the expectation that D+ would be far more than just streaming, but rather the central core for everything from merchandise to theme parks.

D+ may make money one day, but it will never achieve what was pitched to executives 10 years ago.

 

[Sirwalterraleigh]

Let’s take your assertion as 100% valid and that Disney+ breaks even, better yet eeks out a profit sometime in FY 2024.

Does anyone expect that profit to be earth shattering? Does anyone expect D+ to be a continuing profit center with solid revenues going into the foreseeable future, as some had hoped?

Or does D+ hang around as a division that flounders in the middle depending on the quarter?

Does anyone think D+ can ever make back all that which was lost since its inception? Subscribers have peaked, subscriber pricing is maxed out, leaving the only factor affecting arpu being ad revenue, which doesn’t sound promising with stagnant subscriber numbers and low rated shows.

No of course not…

It’s all based on 1991 about people being trapped within their tv…forgetting “things have changed”

…besides…they said what they’re gonna do…

Fold it into Hulu to drain their meager returns and then claim victory

As long as Bob is still there

 

[Trauma]

I know exactly what I am:

So your a late 80’s cult classic ?

 

[celluloid]

I am sure glad they will have The Marvels and Wish to help them in the last long stretch year towards profitability...

 

[Sirwalterraleigh]

So your a late 80’s cult classic ?

..:that’s right, baby

and nothing “cult” about it…it’s an all time great

 

[_caleb]

What exactly magically will happen in 2024 to flip the switch?

Why would you expect it to work like flipping a switch? I sure don’t.

There’s never an answer for that (because there isn’t one)…but it seems clear how they’re gonna spin it. It’s been telegraphed.

The reason Disney is losing money on Disney+ is because they’re spending so much on content. If they paused all production (and they can’t, this is hypothetical), all the subscription and ad money would amount to a pretty substantial profit immediately.

The plan is to integrate Hulu, raise prices (first getting more subscribers to pay full price), sell ads, analyze data, and spend way less on stuff that doesn’t get/keep subs.

They are also working on additional streams of revenue (parks and merch integration stuff).

Tricky, yes. But it doesn’t seem like some big mystery.

 

[_caleb]

Let’s take your assertion as 100% valid and that Disney+ breaks even, better yet eeks out a profit sometime in FY 2024.

Does anyone expect that profit to be earth shattering? Does anyone expect D+ to be a continuing profit center with solid revenues going into the foreseeable future, as some had hoped?

Or does D+ hang around as a division that flounders in the middle depending on the quarter?

Does anyone think D+ can ever make back all that which was lost since its inception? Subscribers have peaked, subscriber pricing is maxed out, leaving the only factor affecting arpu being ad revenue, which doesn’t sound promising with stagnant subscriber numbers and low rated shows.

I do (cautiously). Disney has literally bet the company on it.

 

[Sirwalterraleigh]

Why would you expect it to work like flipping a switch? I sure don’t.

The reason Disney is losing money on Disney+ is because they’re spending so much on content. If they paused all production (and they can’t, this is hypothetical), all the subscription and ad money would amount to a pretty substantial profit immediately.

The plan is to integrate Hulu, raise prices (first getting more subscribers to pay full price), sell ads, analyze data, and spend way less on stuff that doesn’t get/keep subs.

They are also working on additional streams of revenue (parks and merch integration stuff).

Tricky, yes. But it doesn’t seem like some big mystery.

They won’t reduce their investment to make money…they’ll have to throw more in, that’s what Netflix did…it’s not gonna change

And yes…they will fold Disney+ into Hulu

It’s clear. But they’ll have to spend boatloads on content or they’ll get dumped too. That’s the glitch with streaming that bobs first get…nobody is locked in.

So we’ll watch it play. There will never be enough money in streaming for how Disney has operated in its cable/parks model…certainly bad box office makes that problem much worse.

 

[_caleb]

There will never be enough money in streaming for how Disney has operated in its cable/parks model…certainly bad box office makes that problem much worse.

You’ve been saying this. But why was there plenty of money in the box office/linear model, but not enough in DTC?

Nevermind changing consumer habits. Disney has cut out the middlemen (cable companies, distributors, and, to a lesser degree, theaters), so no more sharing of ad revenue. They’re still licensing out content to other platforms and networks, and if they can leverage Hulu’s live TV services, they’ll be making money on other people’s content. No DVDs to print/ship/share with retail.

If they can get their content costs down, mitigate churn with release dates and fan fodder, even without any new revenue streams DTC opens up more money than the old model did.

 

[Sirwalterraleigh]

You’ve been saying this. But why was there plenty of money in the box office/linear model, but not enough in DTC?

Nevermind changing consumer habits. Disney has cut out the middlemen (cable companies, distributors, and, to a lesser degree, theaters), so no more sharing of ad revenue. They’re still licensing out content to other platforms and networks, and if they can leverage Hulu’s live TV services, they’ll be making money on other people’s content. No DVDs to print/ship/share with retail.

If they can get their content costs down, mitigate churn with release dates and fan fodder, even without any new revenue streams DTC opens up more money than the old model did.

Because the customers were completely screwed with no options in the linear model. They were stuck and that was that. What other alternatives for them and advertisers?

that’s right…radio…print…vhs cassettes

the internet wrecked that…just took awhile for the tech to break it down.

not just the customers…the advertisers were stuck too, had to buy em.

it’s not the case anymore. Why is google one of the richest countries on the planet?

because they Are the gateway to advertisers. It’s a better deal.


that streaming chart posted above looked “good” for Disney? Because of 5% when combined?

hell no…not when YouTube is more…and that share will rise as the younger generations come to power.


I get why they’re doing this.
and the reason is this: there aren’t any other options for “content generators”

because they don’t have other options…doesn’t make this one a “good” option. Far from it.

their other choice is to sell themselves.

 

[ohioguy]

Higher profitable subscriptions are going up, ad tiers are kicking off, hulu integration beginning.

DTC losses are trending down significantly.

All pretty good signs their goals are within plan.

Not to mention cracking down on log-in sharing, like Netflix did.

 

[monothingie]

Because the customers were completely screwed with no options in the linear model. They were stuck and that was that. What other alternatives for them and advertisers?

that’s right…radio…print…vhs cassettes

the internet wrecked that…just took awhile for the tech to break it down.

not just the customers…the advertisers were stuck too, had to buy em.

it’s not the case anymore. Why is google one of the richest countries on the planet?

because they Are the gateway to advertisers. It’s a better deal.


that streaming chart posted above looked “good” for Disney? Because of 5% when combined?

hell no…not when YouTube is more…and that share will rise as the younger generations come to power.


I get why they’re doing this.
and the reason is this: there aren’t any other options for “content generators”

because they don’t have other options…doesn’t make this one a “good” option. Far from it.

their other choice is to sell themselves.

The other option is licensing out their schlock content to Netflix, Apple, Amazon for big $$. It’s clear Disney can’t create and stream profitability, but that means Bobs ego takes a hit by admitting failure.

 

[Sirwalterraleigh]

The other option is licensing out their schlock content to Netflix, Apple, Amazon for big $$. It’s clear Disney can’t create and stream profitability, but that means Bobs ego takes a hit by admitting failure.

For some reason…they are adamantly opposed to this.

I think it’s “control”…they decided partnerships are fooolish and total control (which they still need Comcast for due to the need for delivery) ls the way to make gold off their content.
And the content is not nearly as shiny as they thought.

Yep…gonna say it…it’s that stupid blue ocean thing again.

“Our product is unrivaled”

Clearly the public didn’t get the memo about the new cover sheets for the TPS reports

 

[Indy_UK]

So, ive just had a read up on what was said at the town hall...

1. Iger wants to go from 'Fixing' to 'Building' ? All sounds good but he spews the same $60 billion over 10 years which means nothing new is getting announced anytime soon.

2. Studios are loosing a ton of money. I agree with them saying that they may be relasesing too many movies but they're answer to just make more Sequels like Frozen comes across lazy and short term as usual. Look at your spiralling production costs, real them in and make better (and fewer) movies.

3. We could just stick the Linear ESPN channels into a service but want to add more value to the service at the same time.

4. No decision yet whether to find a partner for ESPN or less off any Linear Assets

 

[Nubs70]

For some reason…they are adamantly opposed to this.

I think it’s “control”…they decided partnerships are fooolish and total control (which they still need Comcast for due to the need for delivery) ls the way to make gold off their content.
And the content is not nearly as shiny as they thought.

Yep…gonna say it…it’s that stupid blue ocean thing again.

“Our product is unrivaled”

Clearly the public didn’t get the memo about the new cover sheets for the TPS reports

Iger wants control (and expenses) from beginning to end. This is not a problem because DIS is the only option for the consumer. As such, after a cheap taste, raise rates to the needed level of profitability.

 

[Sirwalterraleigh]

Iger wants control (and expenses) from beginning to end. This is not a problem because DIS is the only option for the consumer. As such, after a cheap taste, raise rates to the needed level of profitability.

Clearly…there’s a few “kinks” in that thought chain

As I said 5 years ago…nobody wants a $29.99 monthly fee for Peter Pan.

They don’t have nearly enough product for an increasingly fickle audience. Not close.

 

[Sirwalterraleigh]

So, ive just had a read up on what was said at the town hall...

1. Iger wants to go from 'Fixing' to 'Building' ? All sounds good but he spews the same $60 billion over 10 years which means nothing new is getting announced anytime soon.

2. Studios are loosing a ton of money. I agree with them saying that they may be relasesing too many movies but they're answer to just make more Sequels like Frozen comes across lazy and short term as usual. Look at your spiralling production costs, real them in and make better (and fewer) movies.

3. We could just stick the Linear ESPN channels into a service but want to add more value to the service at the same time.

4. No decision yet whether to find a partner for ESPN or less off any Linear Assets

Most of that they don’t really control

What they do control is what they invest in parks

And they’re flat footed in Orlando…and Anaheim…and have no way to combat stagnation in the short or medium term

All Bob:..his choices…his mistakes

Very inexcusable considering they actually are losing their dominance in the central Florida market. They are.
If you had told me that 10 years ago…I’d a thought you were crazy.

You can’t not improve capacity and ops flexibility for years on end. You just cannot.

 

[monothingie]

For some reason…they are adamantly opposed to this.

I think it’s “control”…they decided partnerships are fooolish and total control (which they still need Comcast for due to the need for delivery) ls the way to make gold off their content.
And the content is not nearly as shiny as they thought.

Yep…gonna say it…it’s that stupid blue ocean thing again.

“Our product is unrivaled”

Clearly the public didn’t get the memo about the new cover sheets for the TPS reports

The latest mediocre Trolls movie will make Comcast good money, despite its ho-hum box office because it’s getting millions from Netflix for initial DTC streaming rights.

Can you imagine how much Disney could have gotten for Indy or Ms Marvel from Netflix or Amazon just on the notoriety of the franchise names alone? Instead Disney gets diddly squat when it gets lost at D+.

Not that these turds of cinema would have made money if that happened, because they were awful crap.

 

[LSLS]

So, ive just had a read up on what was said at the town hall...

1. Iger wants to go from 'Fixing' to 'Building' ? All sounds good but he spews the same $60 billion over 10 years which means nothing new is getting announced anytime soon.

2. Studios are loosing a ton of money. I agree with them saying that they may be relasesing too many movies but they're answer to just make more Sequels like Frozen comes across lazy and short term as usual. Look at your spiralling production costs, real them in and make better (and fewer) movies.

3. We could just stick the Linear ESPN channels into a service but want to add more value to the service at the same time.

4. No decision yet whether to find a partner for ESPN or less off any Linear Assets

It could be too many movies based on people going to movies less often due to cost, but they released less movies this year than they did 4-5 years ago. I think the #1 issue is they changed their customer viewing habits with D+ along with movies just costing a lot more. I mean, I'm pretty sure Universal released more movies this year and were a net positive (albeit spending a lot less to make theirs)