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The hype about the importance of streaming video services seems to be fading as the competition heats up with many different options in the market. Warner Bros. Discovery on its earnings call 8/1 confirmed the importance of being a different media company and the Walt DisneyDIS.
The company on 8/10 reported their earnings, Bob Chapek, CEO & The director confirmed the full schedule of the things they have.
“Our results demonstrated the ability of the Walt Disney Company’s various businesses to power our ecosystem and explore growth opportunities across industries and distribution channels,” said Chapek. “And I’m happy to say that our production engines are firing on all cylinders across franchises, entertainment and games,” he continued.
They also gave mixed messages on their broadcasting businesses. On the one hand, they boasted that Disney + got 14 million subscribers in their last quarter, but almost all of them were from outside North America.
However, adding in ESPN+ and Hulu, streaming services now top 221 million subscribers, surpassing NetflixNFLX.
for the first time. On the other hand, they lowered their forecast for their financial year ending September 2024 from between 230-260 million earlier for Disney + and Disney + Hotstar to 215-245 million.
The company had previously announced an increase in the price of ESPN + starting on August 23. The monthly fee goes from $ 6.99 / month to $ 9.99 / month and the annual fee rises significantly again, from $ 69.99 / year to $ 99.99 / year, and the company it was some news about price increases.
The fact that the company brought a high price on ESPN + and did not cause a lot of cancellations confirmed the management to expand to other streaming services. “One only needs to look at the increase we made at ESPN, which had the same effect of not making sense at all on our churn. And we believe that we have a lot of money left to go,” said Chapek.
Starting on October 10, Hulu without ads will go from $6.99/month to $7.99/month or you can sign up to pay annually which will go from $65/year to $75/year.
Starting on December 8, the supported version of Disney + will start at a price of $790 while Disney + without ads will increase from $7.99 / month to $199 per month, and the annual subscription price will increase from $75 to $195 . However, they are dipping their toes in the water cautiously before advertising.
“We’re deliberately taking a minimal approach to it, meaning we’re launching with lower ad loading and lower frequency than say, Hulu.” Said Christine McCarthy, EVP & amp; CFOCFO
. “But because of the low ad spend, low frequency and strong ad demand we had, that translates to some industry leading CPM rates during the recent Disney+ season,” he continued.
“It is clear that our unique location is increasingly being sought after by advertisers. Combined with our deep expertise in ad tech, we are in a strong position with a record first advertising commitment leading up to the launch of our sponsored Disney+ tier,” said Chapek.
