Now Walt Disney is following in the footsteps of Netflix with the announcement it will stop releasing quarterly subscriber data for Disney+ and Hulu starting in 2026.
What’s up? It might be
what is going down -- or moderating at best. Streaming has matured -- everywhere.
For its most recent quarterly period, Disney+ and Hulu posted a 2.6 million rise in subscribers to 183
million, a bit softer than some analysts expected.
Domestically, Disney+ is unchanged at 57.8 million. Hulu is also around the same levels domestically as the previous quarter at 51.2
million.
More stagnation is possible, as the average monthly
revenue per subscriber (ARPU) is also flat: Disney+ at $8.06 a month; Hulu SVOD at $12.40.
Still, revenue is key and that rose 6% to $6.2 billion in DTC business including Disney+ and
Hulu. Quarterly, operating income is now at $365 million versus a $19 million net loss a year ago.
advertisement
advertisement
Making things even more cloudy going forward will be that Disney+ now will be combined with
Hulu -- with a separate Hulu streaming service being phased out in 2026.
Repeating the obvious, U.S. streaming business is now almost in full maturation mode. Few new premium streaming
services have been announced to come on line.
Starting this month -- as expected -- is Fox Corp.’s Fox One, a broad entertainment, sports and news streamer, and ESPN, a full, cable TV
network-style and more streaming service launching August 21.
Going forward, expect more data in a different way: overall advertising and subscription revenue per subscriber.
More
reliance on advertising revenue is key; this tends to hold down subscription price increases for the ever price-conscious consumers. About 30% of its overall Disney+ subscribers are using its
ad-supported option.
Viewing will also be key. For example, one industry estimate said Disney+ subscribers spend an average 19.3 hours per month streaming content. That’s less than an
hour per day. Doesn’t sound like much. Still another source says users spend one hour and 29 minutes per day with Disney+.
Will that -- as well as revenue, operating income,
production/cost spending -- be enough for Wall Street investors?
In essence, streamers will want us to look here -- but not there -- with the TV screen being the real goal.