- Daily Zen
Streaming has been a great savior for the company in these hard times.
Disney Plus reported a spike in subscribers and profits, after a long difficult year, in its Q1 2021 earnings report. Disney earnings per share is at 32 cents versus a 41 cents expected loss; and revenue of $16.25 billion vs. the expected $15.9 billion, according to Refinitiv.
The streaming platform now has almost 95 million paid subscribers. Hulu has 39.4 million subscribers, while ESPN Plus has 12.1 million subscribers. Disney had declared a goal of 90 million subscribers in the next 4 years. The company has already surpassed that number and set a new goal of reaching between 230 million and 260 million consumers by 2024.
Disney earnings show a significant boost as the company’s streaming unit hits 94.9 million subscribers, beating its 4-year goal in 14 months.
This is nearly a 9 million jump from the 86 million subscribers it reported in December 2020. The increase in numbers is most likely from the new content like Soul and The Mandalorian, which has a cult following.
Disney CFO Christine McCarthy told analysts on the company’s earnings call that executives are “really happy with the conversion numbers that we’ve seen there going from the promotion to become paid subscribers.”
Disney recently released Marvel Studios’ TV series Wanda Vision, which is sure to attract additional subscribers and, analysts believe that it must have already crossed the 100 million mark.
The company said it has more than 146 million total paid subscribers across its streaming services as of the end of the first quarter. Disney saw its direct to consumer business rise by nearly 73 percent with a revenue of over $3.5 billion.
Disney had declared a goal of 90 million subscribers in the next 4 years. The company has already surpassed that number and set a new goal of reaching between 230 million and 260 million consumers by 2024.
Average monthly revenue per paid Disney+ subscriber dipped 28% compared with the same quarter last year, from $5.56 to $4.03. Disney’s partnership with Hotstar that beams in India and Indonesia has driven its average monthly revenue down.
Disney is set to increase its service prices in the US next month. Disney Plus will cost $7.99 per month or $79.99 per year (up from $6.99 a month or $69.99 per year). The Disney bundle — of Disney Plus, Hulu, and ESPN Plus will also see a $1 increase to $13.99 a month.
The pandemic has affected the company’s entertainment park and resort business along with the highly lucrative cruises. Revenue at Disney’s parks, experiences and products segment fell 53% to $3.58 billion. Filming delays have affected all theatre releases.
Streaming has been a great savior for the company in these hard times. Disney will soon replace Hulu with Star in Europe, Canada, and New Zealand.
Marvel shows The Falcon and the Winter Soldier and Loki are all lined up to be shown by this summer.
The company has also invested in a whole series of Marvel heroes and blockbuster movies to be released in the coming years. Disney expects capital expenditures for fiscal year 2021 to be similar to 2020, with the business investing more in the media and entertainment segment and less in the parks segment.
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