And indeed loading it into that back half is because Disney had to buy out Comcast's share of Hulu, and, at that time, DTC streaming wasn't profitable. That ate up free cash.
This quarter, streaming was $350M profitable.
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This quarter, streaming was $350M profitable.
Nevermore525
Well-Known Member
Yeah, and there’s still another up to $5B that may go to Comcast pending the third party valuation of Hulu.
The disparity is nice. Disney had it under $27.5B, Comcast valued it over $40B
Indy_UK
Well-Known Member
Is that after the password crackdown and recent price hikes?
A profit is a profit at the end of the day
Andrew C
You know what's funny?
Miss him dearly.
Sirwalterraleigh
Premium Member
Nope…there’s really no way to justify the concept
Sirwalterraleigh
Premium Member
Does that sound like a lot?
I can neither confirm nor deny that I wrote that from a cart in a parking lot somewhere on the grounds of WDW.
JoeCamel
Well-Known Member
Under my mattress it is, makes it lumpy
Nah, the password crackdown started in mid-September, a small part of the quarter.
Next quarter should show the results of the crackdown.
Disney Analyst
Well-Known Member
My question would be how does this compare to other streamers? I tried to find a number for Netflix's profit number, but I think the internet is outsmarting me today?
Nevermore525
Well-Known Member
I think Netflix is now operating over 20% operating income. Last few quarters have been over $2B. It took about a decade before Netflix became profitable IIRC.
Sirwalterraleigh
Premium Member
…that’s why I keep hanging out on your patio with my nose pressed to the glass
BrianLo
Well-Known Member
Before the recent price hike and primarily before the password crackdown. I expect another Q1 revenue bump for DTC and then a year of cruising along before the next Fall increase (which is probably more of a US folding of Hulu).
Very favourably. WB is folding in linear HBO to make DTC look profitable, but it isn't on its own. Paramount is actually doing well, but is about a third of the size in terms of total revenue. Peacock is a laggard and the one still burning cash; I still think a merger there is most likely.
Disney was the quickest to true Netflix scale. Netflix streaming took about 13 years to reach Disney's current DTC revenue and 15 years to actually be consistently profitable.
Disney Analyst
Well-Known Member
Right, meaning it's a decent profit right now. Of course I am sure everyone wants more, more, more!!
But nothing to sneeze at, when looking at the big picture / market.
BrianLo
Well-Known Member
Definitely, it’s Netflix circa 2019/2020 on most metrics. Which is well beyond what they thought it would be prior to its launch.
The oft repeated line that streaming cannot replace cable isn’t holding true. Netflix is significantly bigger than Disneys’ linear arm ever was during cables peak. Disney DTC is going to start approaching its prior linear peak within a year or two if this holds up. First revenue and very shortly thereafter operating income. They’ve successfully made the pivot and Wall Street appears to have finally woken up to what I’ve been point out for 18 months now.
Disney Analyst
Well-Known Member
I still think they should just throw ABC live onto the platform, or something. Let non-cable users view ABC content, news, daytime shows, etc.
Nevermore525
Well-Known Member
They will probably do that in time, they are close to that with where Hulu is and have done a few live things with ABC and others. For now, even while linear is dying it is still providing 20% returns, so it’s not a complete loss as of yet.
Indeed. Disney's linear plus its DTC together more often than not provided the most content than all the other competitors.
Right now, Netflix is putting out a lot of content reminiscent of traditional linear TV along with made-for-TV movies. All in one streamer.
Disney has their content split between several linear channels and several streamers still. But, it's on its way to being all consolidated like Netflix has it.
Okay.