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Disney streaming services gaining ground on Netflix
SAN FRANCISCO, Feb 12, 2021 (BSS/AFP) – Disney said Thursday its streaming
services flourished while its parks, travel and film businesses remained
hobbled by the pandemic at the end of last year.
The entertainment colossus behind the Magic Kingdom and all its
entertainment wonders saw subscriptions at its streaming services surge to
more than 146 million subscribers, as people hunkering down due to the
pandemic have turned to sources of online entertainment.
The audience growth for Disney+, Hulu, ESPN and India’s Hotstar comes as
the parent company’s travel and amusement park business suffered, and shows
the entertainment giant is gaining ground on leading streaming service
Netflix’s 203 million subscribers.
“We’re confident that, with our robust pipeline of exceptional, high-
quality content and the upcoming launch of our new Star-branded international
general entertainment offering, we are well-positioned to achieve even
greater success going forward,” Disney chief executive Bob Chapek said in an
earnings release.
The growth of Disney’s streaming services, with the bulk of the audience
made up of the 95 million subscribers who joined Disney+ since it launched
about a year ago, trounced expectations.
Disney+ alone added 21.2 million paid subscribers in the final quarter of
last year, according to the earnings report.
The entertainment giant is prioritizing exclusive programming, original
shows and movies, as well as bundled streaming services to build on the
momentum of its various offerings, which extend beyond Disney+ to include
ESPN, Hulu and Hotstar.
Hit launches at Disney+ at the end of last year included an animated film
“Soul” that combined comedy and drama with a message about finding the spark
that gives life meaning.
The quarter also featured a new season of original Star Wars spin-off
series “The Mandalorian.”
Disney has played to the strengths of its Pixar, Marvel and Star Wars
teams, as well as its own studio content at the streaming service.
“Disney+ has been a massive success and is a testament to Disney’s brand
equity and expertise in storytelling,” said eMarketer analyst Eric Haggstrom.
“This has been one of the most successful consumer product launches in
recent memory.”
The analyst expected Disney streaming services to continue growing, and
that its parks, television and movie businesses will recover quickly as
Covid-19 vaccines are administered and pent-up demand is unleashed.
– Tending to talent –
The pandemic hit Disney’s parks and experiences unit hardest, with the
company’s resorts closed or operating at reduced capacity and its cruise
ships idle, according to executives.
Revenue in that unit plunged more than 50 percent, turning it from a big
profit engine to a loss on the balance sheet.
Film and television production has also been disrupted by the pandemic,
although much of it resumed in the recently ended quarter, the company
reported.
Disney anticipated an additional billion dollars in costs this year
associated with government regulations and safety measures for “employees,
talent and guests” as a result of the health crisis.
The company also did not release any new films to theaters in the quarter,
but stressed anew that it expected to return to debuting movies in cinemas.
Revenue in the quarter fell 22 percent to $16.25 billion but beat market
expectations. Disney reported profit of $17 million compared with $2.1
billion in the same period a year earlier.
Disney shares were up three percent in after-market trades that followed
release of the earnings figures.
BSS/AFP/GMR/0922 hrs