This is the biggest leap in my forecast, but Disney Plus would continue to be a competitive bargain at that price. Disney Plus costs $7 a month for those paying the sticker price. Mr. The Walt Disney Co. "Form 10-K for the fiscal year ended September 28, 2019," Pages 1-17. Disney annual revenue for 2020 was $65.388B, a 6.06% decline from 2019. 2 streaming player in subscription revenues this year. © 2021 Insider Inc. and finanzen.net GmbH (Imprint). Disney shares gained 27 cents, or less than 1%, to $145 in after-hours trading after the release of results. (Photo credit: ... [+] ROBYN BECK/AFP via Getty Images). The subscriber growth helped Disney beat its overall earnings, coming in at $28.6 billion in revenue, above the projected. However, Disney Plus — which launched less than a year ago — has grown to 57.5 million subscribers, CNBC reported. Last year, Disney generated $69.6 billion in revenue and $14.9 billion in profit. A live-theater recording of "Hamilton" and Beyonce's visual album "Black is King" have been added in recent weeks, and "Mulan" is set to debut on the service instead of in cinemas at an additional cost of $29.99 to subscribers. Revenue: $19.1 billion vs. $19.04 billion expected, according to Refinitiv Disney's fiscal fourth-quarter earnings arrive just days before the company's … The company's revenue slumped 42% to below $12 billion last quarter as sales plummeted 85% in the parks, experiences, and products division and 55% in the studio business. Today was supposed to be a big day for Disney.The company's highly-anticipated streaming service, Disney Plus launched this morning. Revenue: Average analyst expectations were $19.56 billion at … I have written extensively on the topic of entertainment, with Creating Blockbusters being my latest book, and have been quoted in a variety of publications and news programs including The New York Times, Los Angeles Times, USA Today, ABC News, and Fox Business. The company also revealed highly anticipated Disney+ subscriber numbers. However, Disney Plus has grown to 54.5 million since subscribers since launching last November, and helped drive a 260% revenue increase in Disney's direct-to-consumer and international … Take a look at the drive-thrus coming this year. Disney+, combined with Hulu—which Disney acquired in 2019 from partners Comcast and Fox—will cement Disney as the No. “While all valid concerns, we believe the market has often overstated the risk and … Until then, consumers appear willing to pay for several streaming services, and Disney Plus is clearly among them. Disney Plus is expected to have 90 million subscribers by that time, meaning it would be generating ~$630 million in monthly revenue or ~$2.0 billion quarterly. How the numbers are changing. Here's a chart showing Disney's stock-price gain on Wednesday: NOW WATCH: How 'white savior' films like 'The Help' and 'Green Book' hurt Hollywood, Plus500. It forecasts that by the end of 2022, the combined streaming services of Disney+, Hulu, and ESPN+ will generate some $12.36 billion in And if we add the five-year revenue potential of ESPN Plus and Hulu on top of Disney Plus, the direct-to-consumer business may easily be the dominant revenue-generating division of the future. Accessed Mar. Disclaimer | Disney+ is the exclusive home for your favorite movies and TV shows from Disney, Pixar, Marvel, Star Wars, and National Geographic. In terms of SVOD revenue though, Disney will rank ahead of Amazon, according to its forecast. Hulu is a significant driver of advertising revenue. Start streaming today. Disney shares gained 27 cents, or less than 1%, to $145 in after-hours trading after the release of results. Disney is betting big on Disney+.Making several Marvel and Star Wars TV shows - alongside various other series and movies, including live-action remakes like Lady and the Tramp - costs a lot of money, with the Marvel and Star Wars shows expected to have budgets around the $100 million mark. Average monthly revenue per paid subscriber in the quarter was $5.56. This equates to an annual revenue of nearly $3.7 billion when taking into account the average monthly revenue per paid subscriber of $5.63 from its second quarter earnings report. While this is minuscule compared to the company’s total 2019 revenue of $69.5 billion, in a few short years Disney Plus has the potential to be a $30 billion giant. Disney Plus will roll out in the U.S. on Nov. 12 at a price of $6.99 per month, or $69.99 per year. The initial expectation at launch was that Disney Plus would gain 60 million to 90 million subscribers by the end of its fiscal 2024. All rights reserved. Credit: Disney The Walt Disney Co. "Form 10-K for the fiscal year ended October 3, 2020," … A deep global recession could derail these estimates as would a highly competitive offering and shifting customer preferences. However, in 2017, it had a market capitalization of $408,000 and generated $6.7 million in revenue, of which more than one-quarter was derived from Disney-related projects. All Rights Reserved, This is a BETA experience. Quarterly revenue of the Walt Disney Company 2018-2020, by segment Quarterly operating income/loss of the Walt Disney Company 2017-2020, by segment Disney+ subscriber numbers worldwide 2020 During the May 5, 2020 earnings call, Bob Chapek, chief executive officer of The Walt Disney Company, commented, “As we’ve said our company’s top priority and key to our growth is our direct to consumer business. How the numbers are changing. It will wield tremendous synergy potential by being the focal point for promoting what’s new throughout the Disney empire. Revenue: Average analyst expectations were $19.56 billion at the end … Disney Plus hit an astonishing 54.5 million subscribers worldwide in just six months. It’s important to note that Netflix’s international expansion has been robust, now accounting for more than 60% of its subscribers. A lot of people took advantage of the company's offer of free Disney+ for a year so they could get their Baby Yoda fix. Comments (0) With the most valuable content library of any … Wall Street expected revenue of $20.7 billion. Disney Plus is offered at a ridiculously low price of $6.99 monthly, $69.99 for a yearly commitment ($5.83/mo. See also: Disney+ may be the only plus for Disney as coronavirus slams other businesses. It would also not seem unreasonable if the monthly subscriber fee for Disney Plus rises to $12.50 in 5 years. I am a longtime entertainment consultant and adjunct professor at the USC Marshall School of Business where I teach entertainment marketing. ), and as a bundle with ESPN+ and Hulu for $12.99. No kidding. ». There we are: 200 million subscribers by 2025, at an average monthly fee of $12.50, gives us an annual revenue of $30 billion for Disney Plus. Driving it all with be Disney Plus. Verizon reported fourth quarter revenue … You may opt-out by. And it may become a $30 billion giant sooner than anyone thinks. How 'white savior' films like 'The Help' and 'Green Book' hurt Hollywood, Meet the GameStop investor upending the stock market with cat memes, reaction GIFs, and fundamental analysis », Shake Shack is getting a make-over. Disney reported its fourth quarter earnings today — the same day it’s celebrating the anniversary of Disney Plus launching — and it shows just how big … Disney Plus launched in November to compete with online video services like Netflix.Disney had 26.5 million Disney Plus subscribers as of Dec. 28, the end of its first fiscal quarter. And I am pleased to say that the response to Disney Plus in particular has exceeded even our highest expectation.” But he remained cautious about predicting the future, saying, “We’re not really prepared to update our guidance and certainly wouldn’t give any projections in terms of when we would reach profitability.” Understandably, there are too many shifting variables that include response to COVID-19, potential of a worldwide recession, existing and new competitive streaming services, and changing consumer behavior. As Disney CEO Bob Iger explained in the company's fourth-quarter earnings call, Hulu is exemplary when it comes to monetization. But let’s extend that to 2025 in consideration that the rush of new streaming customers may lessen once the threat of COVID-19 subsides. This year, simply put, it did not. Disney annual revenue for 2019 was $69.607B, a 17.12% increase from 2018. Firstly, we share information on Disney business segments. Disney CEO Bob Iger said in a call with analysts that Disney Plus will have 620 movies, 10,000 TV episodes and numerous short features by its fifth year. Average monthly revenue per paid subscriber in the quarter was $5.56. Disney will forgo about $150 million in content licensing revenue in its current fiscal year as the company prepares for the launch of Disney Plus later this year. If the number of Disney Plus subscribers hits 100 million next year as I believe is possible, total annual revenue will be locked in at $6.75 billion, assuming that the average monthly revenue per paid subscriber remains at $5.63. This is speculative, of course, and it assumes that future projections are perfectly reflective of past results. I conducted roughly one. See also: Disney+ may be the only plus for Disney as coronavirus slams other businesses. If Disney gradually raises the average monthly revenue per paid subscriber to $10 over the next two years, which is still a competitive bargain, it could generate $12 billion in annual revenue for Disney Plus from its then 100 million subscribers. Read More: Fund manager Tom O'Halloran quadrupled investors' money in 9 years by betting on super high-growth companies. Only when the global market stalls will a market share battle begin. It may also be the case that, given the unit’s explosive growth, estimating the future of Disney Plus looks too rosy and too risky to state publicly. Disney recently announced that as of May 4, 2020, Disney Plus attained an astonishing 54.5 million subscribers worldwide, a mere six months after launch. It will be the face of the Disney brand because it will be ever-present in people’s homes. Disney Plus is still behind both Netflix and Amazon Prime Video in terms of global subscriptions. The Walt Disney Company reported that Disney+ had nearly 74 million subscribers worldwide as of its final quarter of 2020. He explains his approach, and why new technologies could make the next decade even more prosperous than the 2010s. Good news for Verizon. Disney’s direct-to-consumer division, which is where streaming exists, … Disney swung to a fourth-quarter loss and saw revenue slide over last year, as the still-raging coronavirus pandemic continued to weigh on its theme parks, studio and media … Disney+ signed up over 10 million subscribers in its first day of operations, the company said Wednesday. Investors celebrated the news that Disney Plus … Walt Disney (NYSE: DIS) benefited from a stellar first quarter for its newly launched Disney+ streaming service, launched in November 2019. Disney's much anticipated streaming video service, Disney+, debuted earlier this month, as the media behemoth looks to challenge the likes of Netflix and the upcoming streaming offerings from AT&T and Comcast. to $12.99 if bought on a monthly basis. The results came as Disney readies for the debut Tuesday of its Disney Plus streaming service. He explains his approach, and why new technologies could make the next decade even more prosperous than the 2010s. Vanguard is emerging as a key force in a $3.8 trillion battle against PIMCO and BlackRock for bond investors' cash. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income. Disney Plus mobile revenue: Month following 12 November 2019 launch: $55 million: Month following 24 March 2020 (Europe only) $18.5 million And Disney knows how to extract value. 76.4% of retail CFD accounts lose money, Registration on or use of this site constitutes acceptance of our, Visit Business Insider's homepage for more stories. Disney is betting big on Disney+.Making several Marvel and Star Wars TV shows - alongside various other series and movies, including live-action remakes like Lady and the Tramp - costs a lot of money, with the Marvel and Star Wars shows expected to have budgets around the $100 million mark. Whether Disney has surmounted the tech hurdles remains to be seen. DIS Plus revenue potential. But we are not done yet. Meet 4 power players it brought on to help drive its push. Considering Disney’s combined viewing platforms are reaching close to the revenue numbers that streaming king Netflix holds is truly spectacular for such a new company and service. Disney annual revenue … The Walt Disney Company’s (DIS) revenue of $14.92 billion exceeded the expectation of $14.36 billion in the second quarter of fiscal 2019. It only took Netflix roughly three years to go from 100 million global subscribers to nearly 200 million (183 million in the first quarter of 2020). Disney annual/quarterly revenue history and growth rate from 2006 to 2020. This post is about how the Walt Disney Company (“Disney”) makes money. Disney stock jumped as much as 10% on Wednesday, adding more than $21 billion to the entertainment giant's market capitalization. And if we add the five-year revenue potential of ESPN Plus and Hulu on top of Disney Plus, the direct-to-consumer business may easily be the dominant revenue-generating division of the future. © 2021 Forbes Media LLC. The Walt Disney Company - additional information Swinburne also addressed concerns that Disney Plus could cannibalize other revenue streams. Disney revenue for the twelve months ending September 30, 2020 was $65.388B, a 6.06% decline year-over-year. Disney earnings beat but revenue missed. Walt Disney Company (NYSE: DIS), is most likely to expand its revenue base by over $10 billion in 2019. Article continues below advertisement Disney Plus already has 50 million subscribers, the company announced on Wednesday. Things get far more interesting when we turn our attention to price. While it is not fair to compare a $30 billion guestimate of Disney Plus revenue five years hence to last year’s revenue of other divisions, those divisions will not be growing at the accelerated pace of Disney Plus, and they will be struggling to achieve comparable 2019 revenues due to shutdowns, consumers’ ongoing concerns of attending theaters and theme parks, an acceleration of people dumping cable services, and soft advertising revenues. Is It Surprising That Coachella 2021 Is Canceled? Estimates: Disney earnings were seen rising 22% to $1.31 per share on 8% revenue growth to $13.81 billion, according to Zacks Investment Research. Mulan: Disney Plus Grosses Exceed $200 Million? The direct-to-consumer business that includes Disney Plus posted revenue of $4 billion, up from $918 million a year ago, while its operating loss widened to $693 million from $136 million. This is a tremendous value versus Netflix, whose prices range from $8.99 (basic) to $15.99 (premium), and versus Amazon Prime’s annual membership of $119 per year ($9.92/mo.) America's Top Givers: The 25 Most Philanthropic Billionaires, Impact 50: Investors Seeking Profit — And Pushing For Change, Ariana Grande, Travis Scott, Juice WRLD And Selena Gomez: 5 Important Moves On This Week’s Hot 100, Sundance 2020: ‘In The Earth’ Is A Strong Horror Entry With Gorgeous Imagery. 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