Disney has emerged as the most promising traditional media company to pivot successfully to streaming, with a $321 million quarterly DTC profit, a $134 million profit for fiscal 2024, and 42% of its media revenue now stemming from streaming, putting it ahead of Paramount (27%) and WBD (26%) in monetizing its transition, according to The Wrap.
Industry trends show linear TV subscriptions declining 8% quarterly, while streaming subscriber growth (+10% this quarter) and pricing strategies, particularly ad-supported tiers, are driving revenue growth, with Disney, WBD and Paramount all showing incremental DTC profitability.
Analysts highlight consolidation opportunities and scaling challenges for media companies, with Disney focusing on integrating ESPN into its streaming portfolio, WBD considering acquisitions and Netflix maintaining its dominance through global expansion and ad-tier success.
Disney squeezed out another quarterly profit in its overall direct to consumer (DTC) streaming business of $321 million, and it had a profitable fiscal year 2024 of $134 million after a dismal $2.61 billion loss in 2023. It now has 236.2 million Disney+, Hulu and ESPN+ subscriptions, about 47.5 million less than industry leader Netflix.
More importantly, 42% of Disney’s total media revenue (excluding Experiences) came from streaming this quarter. That compares to Paramount Global and Warner Bros. Discovery — the companies struggling the most to make streaming work and close the gap with Netflix — whose DTC revenues accounted for 27% and 26% of their total revenues, respectively, according to Macquarie Equity Research.
“Disney will get there,” Tim Nollen, an analyst at Macquarie, told TheWrap, echoing what other Wall Street analysts said last week. “Their pivot to streaming will enable them to overcome the declines in linear.” But for “the likes of Paramount and Warner Bros. Discovery, it’s more questionable.”
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