Friday, 12 April 2019

Walt Disney investor day: Disney+ announcement

Disney+

  • to launch 191112, first in US, near-global after 2 yr
  • 7 $/mo, 69 $/yr, ad-free (number of screens: unknown)
  • downloads for offline viewing, parental controls, personalisation, supports 4K & HDR
  • portfolio
    • at launch: 7500 past episodes, 25 original series, 10 original movies/specials, 400 library movies, 100 recent movies
    • growing to in yr 5: 10k past episodes, 50 original series, 10 movies/specials, 500 library movies, 120 recent movies
  • to include all 2019 film releases after theatrical & home entertainment windows close; plans original series from Marvel, Star Wars, Pixar, Disney Animation, NatGeo
  • targets 60-90m subs YE 2024 (o/w 1/3 in US long term)
  • expenses
    • original content spending $1b in 2020 (amortisation $500m), growing to $2.5b (for 50 originals) in 2024 (amortisation $2b)
    • licensed content expense $1.5b in 2020, $2.5b in 2024
    • operating expenses $1b in 2020, peak losses in 2020-2022
  • profitability by 2024
  • considers discounted bundle with ESPN+ & Hulu

Hulu

  • 25m subs
  • ad-free 12 $/mo or limited ads 6 $/mo; Live TV tier 45 $/mo
  • targets 40-60m subs YE 2024
  • peak operating loss $1.5b in 2019, profitability in 2023/2024
  • plans international expansion
ESPN+

  • 2m subs
  • limited ads 5 $/mo or 50 $/yr
  • targets 8-12m subs YE 2024
  • operating loss $650m in 2019 & 2020, profitable by 2023
  • plans international expansion
Hotstar

  • 300m MAU
  • free+ads or premium
  • in Asia

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