Read the story here. Advertise at Before It's News here.
Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views
Last hour:
Last 24 hours:

Disney sees Disney+ subscribers trebling in a year

% of readers think this story is Fact. Add your two cents.

Walt Disney Co (NYSE:DIS) has posted a huge increase in Disney+ subscribers that helped offset losses in other parts of the business.

The streaming service racked up 95mln paying users as of January 2, up from 26.5mln a year before and just 14 months after its inception, with subscribers rocketing 83% to 12mln for ESPN+ and up 30% to 39mln for Hulu.

READ: Disney plans massive expansion of content as Disney+ subscriber numbers smash forecasts

In comparison, 24-year-old rival Netflix had 203mln in the fourth quarter of last year.

As a result, revenues in the Disney Media and Entertainment Distribution dipped 5% to US$12.6bn with operating income down 2% to US$1.4bn.

However, the Disney Parks, Experiences and Products segment saw revenues tumble 22% to US$16.2bn with operating income plunging 67% to US$1.3bn, with COVID-19 closures causing a US$2.6bn hit on profits.

During the quarter, the entertainment giant’s theme parks were closed or operating at significantly reduced capacity and cruise ship sailings and guided tours were suspended.

Theatrical releases were delayed, shortened or cancelled and stage play performances have been suspended.

There were also disruptions in the production and availability of content, including the cancellation or shift of key live sports programming into 2021, as well as the suspension of production of most film and television content.

Most of the production resumed in the last few months of 2020 but there is still disruption depending on local lockdown measures, while there are additional costs to ensure safety, which are expected to come in at US$1bn this year.

“It’s this diversity in the face of adversity that is Disney’s real strength. An excellent content catalogue, whether that’s Princess in Parks of Quarterbacks on ESPN, is one thing – but Disney’s ability to sell those products through a variety of channels multiplies the benefit many times over,” commented Nicholas Hyett, Equity Analyst at Hargreaves Lansdown.

“Disney trades on a monstrous 74.1 times earnings, a valuation more common among cloud computing giants and electric car manufacturers.”

“The stellar valuation is partly down to the pandemic depressed earnings expected this year, but also reflects a genuine investor enthusiasm for Disney’s direct to customer streaming service. It’s a vote of confidence by the market, but also sets Disney a high bar for success.”

Shares rose 1% to US$190.91 in afterhours trading.

Story by ProactiveInvestors


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Order by Phone at 888-809-8385 or online at M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Load more ...




Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.