The Californian entertainment group assured that its losses had reached their “worst” level. “They will start to decrease during the current quarter,” promised Bob Chapek, the boss of the company.
Le Monde with AFP
Disney+ continues to grow at full speed, defying other entertainment platforms that are skating, but the streaming service of the enchanted kingdom will have to reduce its costs if it wants to become profitable.
Disney+ now has 164.2 million subscribers, an increase of 12 million compared to the end of June, much more than the market expected, According to a press release quarterly results published Tuesday, November 8 .
But the Californian group streaming platforms (Disney +, ESPN + and Hulu) have more than doubled their operational losses over a year, to $ 1.47 billion for the period from July to September. The manager of the platform, Bob Chapek wants to be reassuring, even optimistic. For him, losses “will start to decrease during the current quarter”. Before ensuring that Disney+ would reach profitability in 2024.
The platform will launch on December 8 a new subscription with advertising, for $ 7.99 per month, while its basic subscription without advertising goes to $ 10.99 in the United States. Like its competitor Netflix, which puts a similar formula into service this month, Disney+ hopes to attract even more spectators but also diversify their sources of income.
lower costs, put up prices
Bob Chapek has also mentioned budget cuts half-word, especially in marketing expenses, and the possibility of further raising prices. “Our history shows that the price increases (…) have not translated by significant increases in the terminations. So we think we still have room,” he said.
For the current quarter, Disney+ can count on the film Hocus Pocus 2, released on September 30 – “the most viewed first in history” of the platform, said Bob Chapek – and Andor, a television series Anchored in the very popular universe of Star Wars. “But the growth of subscribers will not be linear every quarter,” warned Christine McCarthy, the group’s financial director.
It expects a low increase in paid users of Disney+ during the holiday season, and a new acceleration in early 2023, in particular thanks to international markets. Streaming platforms have experienced flamboyant growth for years, still amplified by the pandemic. But Netflix, the veteran and leader in the sector experienced a difficult first semester, losing nearly 1.2 million subscribers, before rebounding this summer.
Disney+ should exceed 108 million American spectators by the end of the year, according to figures from the Insider Intelligence. The platform will thus capture more than 45 % of American streaming services, behind YouTube, Netflix, Amazon and Hulu (which belongs to Disney).
“record” result for the amusement parks
In all, Disney disappointed with revenues of $ 20.1 billion and profits at 162 million, up over one year, but lower than expectations. Its title lost approximately 6 % after the fence of the scholarship on Tuesday – the market discussed a turnover of $ 21.27 billion and a net profit of 797 million.
Its branch “amusement parks, experiences and derivative products” generated 7.4 billion income, up 36 % over a year, in the fourth quarter of its offbeat exercise. A “record” result said Bob Chapek.
The entertainment giant benefits from the release of pandemic and the appetite of consumers for travel and outings after a long period of health restrictions linked to the COVVI-19.