The cable deal isn’t live yet.The major problem is that subscriptions have plateaued and a large chunk are likely non retail subscribers (wholesale accounts made up by people getting bundles from telecom providers that pay a fraction of the retail price)
I’ll get out ahead of it…yes Disney added 7M subscribers last q, but what large cable company whose name ends in pectrum did they make a deal with to bundle D+ with cable packages?
So yes Disney does make money on subscribers, but ARPU should also factor in.
Again using the Sony example, Sony takes a cut on the licensing revenue, but doesn’t have to deal with the black hole of owning its on DTC platform.
I know because I opted not to renew my annual plan this time and instead, downgrade for that when I pick it up for “free”*.
*with ads but since I’m already stuck with the cable, I’ll take it rather than pay twice.