So then it has a marketing problem with the young set? It seems like people like it once they see it given the audience score of over 90% at RT, which is on the high end for Pixar movies.
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- Thread starter hhisc16
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DefnotDLav
Mouseketeer
- Joined
- Aug 2, 2021
Marketing has to be tough these days. In the before streaming times, you would watch Disney channel and be inundated with ads for the newest movie. But watching D+ or Netflix, you obviously don't get ads like we used to. Of course if your kids watch youtube they get their fair share.
I really think it just comes down to cost. And Covid has retrained us that watching family movies at home isn't that sub par of an experience.
I really think it just comes down to cost. And Covid has retrained us that watching family movies at home isn't that sub par of an experience.
BrianL
Doom Buggy Driver
- Joined
- Jul 24, 2013
Maybe not a compeltely seperate service, but heavily siloed from the other content.
Yes, that would make sense. I'm sure they are trying to keep the younger set, as they age out of much of the D+ content, on the planform with older fare but I've always wondered if SW and Marvel should have been put on Hulu, maybe once they fully own it? So many questions and upheaval in this once steady, cash cow industry.
irlandaise
DIS Veteran
- Joined
- Sep 27, 2022
I've been following Fathom Events with some interest. It certainly isn't going to save movie theaters by bringing in as much as a blockbuster does, but they're attracting multiple niche audiences. Off the top of my head, I know that they offer anime, Christian films, the National Theatre from London, the Metropolitan Opera's live broadcasts, and Turner Classic Movies re-releases. I may be forgetting some. They're filling those smaller rooms in multiplexes.
Elijah Abrams
Mouseketeer
- Joined
- Feb 6, 2020
Let’s leave that to Iger's successor.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
https://deadline.com/2023/06/pay-tv-us-homes-cord-cutting-streaming-pwc-forecast-1235420142/
Pay-TV Will Dip To 38% Of U.S. Homes By 2027 As Exodus Continues; Streamers Facing Saturated U.S. Market, “Tectonic” AVOD Shift – PwC Forecast
By Jill Goldsmith
Co-Business Editor
June 19, 2023 10:46am PDT
By 2027, the U.S. television industry will see $30 billion less annually from traditional subscription and advertising revenue than it did a decade earlier amid ongoing cord cutting, according to a new forecast by PwC published today.
The rate of subscriber decline in the traditional TV bundle hit a milestone in the third quarter of 2022, when the number of pay-TV households fell below half the total number of U.S homes for the first time.
By 2027, the firm’s Global Entertainment & Media Outlook 2023-2027 (which also broke U.S. numbers separately) predicted, millions more U.S. homes will have walked away, reducing total penetration to 49.9 million — down from almost 100 million as recently as 2016 — which means pay-TV will be present in just 38% of total U.S. homes.
The numbers reflect a years-long trend that’s seen a forced pivot by traditional media players to streaming, following first mover Netflix and others over the top.
The transition is proving painful as streaming costs and red ink has ballooned. A difficult economic climate with high inflation now has most streaming services offering (or about to) a version with advertising. This entire shift is extremely delicate, since traditional television, albeit declining, is still what provides the cash to fuel streaming expansion.
Revenue from the OTT market will grow to $57 billion this year from $49 billion in 2022. And it will hit $75.5 billion in 2027, PwC predicts. OTT advertising revenue will grow more quickly than subscription with the numbers reaching, respectively, $33.4 billion and $35.7 billion that year (from an estimated $21.8 billion last year and $29.5 billion this year.)
“The biggest tectonic move continues to be the rise of ad-supported streaming. AVOD will be the main driver of growth in the US OTT sector across the forecast period,” it said. Revenue increasing at a 14.2% CAGR – well ahead of SVOD’s increase at a 6.1% CAGR – and growing its share of total revenue from 34.8% in 2022 to 44.3% in 2027.”
The U.S. remains the focal market of the global streaming wars, “But the forecast period highlights the increasing saturation of the US market and the future commercial challenges that pose for pure-play OTT and traditional cable and TV companies in the sector,” PwC said.
The 2027 total U.S. OTT video revenue reps only 4.3% year-on-year growth from the year before, just one-fifth the rate seen at the start of the forecast period in 2022, and a fraction of the 35.3% seen in 2020 at the height of the pandemic when coronavirus lockdown restrictions created the perfect conditions for record-setting subscriber growth, PwC noted.
“The biggest tectonic move continues to be the rise of ad-supported streaming. AVOD will be the main driver of growth in the US OTT sector across the forecast period,” it said. Revenue increasing at a 14.2% CAGR – well ahead of SVOD’s increase at a 6.1% CAGR – and growing its share of total revenue from 34.8% in 2022 to 44.3% in 2027.”
The report also highlighted connected TVs, which PwC said will continue to reshape media.
It expects smart TV advertising to hit $21.3 billion in revenue in 2027 off a five-year compounded annual growth rate of 13%.
This year it puts the number at $14.3 billion vs $11.5 billion in 2022 (which was up from $8.5 billion the year before) – “representing a significant shift in media dollars.”
The CTV category comprises revenue from advertising delivered over the Internet to smart TVs, media streamers, games consoles and connected set-top boxes, and includes premium ad-supported services as well as FAST platforms, or free ad-supported streaming TV, led by aggregators like Pluto TV.
Pay-TV Will Dip To 38% Of U.S. Homes By 2027 As Exodus Continues; Streamers Facing Saturated U.S. Market, “Tectonic” AVOD Shift – PwC Forecast
By Jill Goldsmith
Co-Business Editor
June 19, 2023 10:46am PDT
By 2027, the U.S. television industry will see $30 billion less annually from traditional subscription and advertising revenue than it did a decade earlier amid ongoing cord cutting, according to a new forecast by PwC published today.
The rate of subscriber decline in the traditional TV bundle hit a milestone in the third quarter of 2022, when the number of pay-TV households fell below half the total number of U.S homes for the first time.
By 2027, the firm’s Global Entertainment & Media Outlook 2023-2027 (which also broke U.S. numbers separately) predicted, millions more U.S. homes will have walked away, reducing total penetration to 49.9 million — down from almost 100 million as recently as 2016 — which means pay-TV will be present in just 38% of total U.S. homes.
The numbers reflect a years-long trend that’s seen a forced pivot by traditional media players to streaming, following first mover Netflix and others over the top.
The transition is proving painful as streaming costs and red ink has ballooned. A difficult economic climate with high inflation now has most streaming services offering (or about to) a version with advertising. This entire shift is extremely delicate, since traditional television, albeit declining, is still what provides the cash to fuel streaming expansion.
Revenue from the OTT market will grow to $57 billion this year from $49 billion in 2022. And it will hit $75.5 billion in 2027, PwC predicts. OTT advertising revenue will grow more quickly than subscription with the numbers reaching, respectively, $33.4 billion and $35.7 billion that year (from an estimated $21.8 billion last year and $29.5 billion this year.)
“The biggest tectonic move continues to be the rise of ad-supported streaming. AVOD will be the main driver of growth in the US OTT sector across the forecast period,” it said. Revenue increasing at a 14.2% CAGR – well ahead of SVOD’s increase at a 6.1% CAGR – and growing its share of total revenue from 34.8% in 2022 to 44.3% in 2027.”
The U.S. remains the focal market of the global streaming wars, “But the forecast period highlights the increasing saturation of the US market and the future commercial challenges that pose for pure-play OTT and traditional cable and TV companies in the sector,” PwC said.
The 2027 total U.S. OTT video revenue reps only 4.3% year-on-year growth from the year before, just one-fifth the rate seen at the start of the forecast period in 2022, and a fraction of the 35.3% seen in 2020 at the height of the pandemic when coronavirus lockdown restrictions created the perfect conditions for record-setting subscriber growth, PwC noted.
“The biggest tectonic move continues to be the rise of ad-supported streaming. AVOD will be the main driver of growth in the US OTT sector across the forecast period,” it said. Revenue increasing at a 14.2% CAGR – well ahead of SVOD’s increase at a 6.1% CAGR – and growing its share of total revenue from 34.8% in 2022 to 44.3% in 2027.”
The report also highlighted connected TVs, which PwC said will continue to reshape media.
It expects smart TV advertising to hit $21.3 billion in revenue in 2027 off a five-year compounded annual growth rate of 13%.
This year it puts the number at $14.3 billion vs $11.5 billion in 2022 (which was up from $8.5 billion the year before) – “representing a significant shift in media dollars.”
The CTV category comprises revenue from advertising delivered over the Internet to smart TVs, media streamers, games consoles and connected set-top boxes, and includes premium ad-supported services as well as FAST platforms, or free ad-supported streaming TV, led by aggregators like Pluto TV.
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
https://www.wsj.com/articles/streaming-customers-get-choosy-about-when-to-pay-for-ads-20d19b8c
Streaming Customers Get Choosy About When to Pay for Ads
Growing pool of subscribers tolerate commercials on some services but not others
By Sarah Krouse
June 19, 2023 5:30 am EDT
Kari Dalia is a self-proclaimed reality-TV buff who used to spend roughly $100 a month for ad-free streaming services. When she recently reviewed her personal budget, she decided to scale back.
The 34-year-old e-learning designer from Chicago says she now shells out only for the ad-free version of ’s Peacock, the service she watches the most, for shows such as Bravo’s “Below Deck” and “Summer House.” She opts for the lower-cost ad-supported versions of Hulu, Netflix and Paramount+.
For some customers, the choice of whether to pay for streaming services with ads is simple. One group of viewers is always willing to watch ads to save money, while another detests them and cuts the cord to get away from commercials.
But for viewers such as Dalia, it is a more complicated decision. Among the factors these consumers consider: how badly they want to watch a given show, how many people use their account, the shape of their household finances, and how much time they plan to spend across all of the films and shows available on a service.
Dalia is among a growing group of streaming customers who are getting choosier about when they pay for an ad-free experience and when they opt to save money. “Time is money. I will give my money to save time on ads for the one I’m using the most,” she said.
These so-called ad managers—those who sometimes pay for ad-free service and other times don’t—represented 46% of premium streaming-service customers with two or more subscriptions at the end of March, according to subscriptions analytics firm Antenna. That percentage is up from 39% two years earlier, when fewer streaming services offered ad-supported plans.
Meanwhile, the pool of people with two or more streaming subscriptions who always opted for ad-supported tiers across the services that offered them fell to 25% in March from 35% two years earlier. The portion of those subscribers who avoided ads completely given the choice grew to 29% from 26%.
Streaming services from Netflix to Disney+ have launched ad-supported plans over the past year, hoping to attract new customers willing to pay less in exchange for viewing advertisements. Amazon is also planning to launch a new ad-supported tier of its Prime Video streaming service, The Wall Street Journal reported earlier this month.
These subscriptions bring in more revenue per user than ad-free plans because streaming services benefit from the monthly subscription fee as well as revenue from ads sold. Netflix said in April that its new ad plan was generating more revenue per user in the U.S. than its standard, $15.49-a-month ad-free plan.
Ad-backed tiers of service are growing faster than ad-free plans, new data from Antenna show.
“If there’s an ad option, I’ll take it,” said Edward Taylor Connor Jr., 33 years old, of Florida, who pays for Hulu with ads as well as Netflix’s soon-to-be retired DVD service and its ad-supported plan. “It just doesn’t bother me,” he said.
People who paid for ad-supported tiers generally remained subscribers longer than those who avoided them, Antenna found, based on customer-retention rates across premium streaming services over a 12-month period.
There were no meaningful demographic differences in terms of ethnicity, gender, income or age between people who avoided, accepted and managed ad-supported tiers of service, according to Antenna.
The trend of customers managing when they do and don’t pay for ad-supported services means there are pockets of customers that advertisers can reach only on one service, Antenna said.
For example, of the Hulu customers who accept ads, 74% don’t have any other ad-supported premium streaming services, meaning the Disney-controlled streaming service is the only way advertisers can reach them, Antenna found.
Still, some consumers are likely to remain out of reach for advertisers looking for streaming audiences, even if the viewers have to pay more for subscriptions.
“They’re just an insult to my intelligence,” said Mark Libman, 67, who lives in a rural area south of Asheville, N.C. His subscriptions include ad-free versions of Netflix and Max as well as Amazon’s Prime Video. “They couldn’t pay me to watch ads,” he said.
Streaming Customers Get Choosy About When to Pay for Ads
Growing pool of subscribers tolerate commercials on some services but not others
By Sarah Krouse
June 19, 2023 5:30 am EDT
Kari Dalia is a self-proclaimed reality-TV buff who used to spend roughly $100 a month for ad-free streaming services. When she recently reviewed her personal budget, she decided to scale back.
The 34-year-old e-learning designer from Chicago says she now shells out only for the ad-free version of ’s Peacock, the service she watches the most, for shows such as Bravo’s “Below Deck” and “Summer House.” She opts for the lower-cost ad-supported versions of Hulu, Netflix and Paramount+.
For some customers, the choice of whether to pay for streaming services with ads is simple. One group of viewers is always willing to watch ads to save money, while another detests them and cuts the cord to get away from commercials.
But for viewers such as Dalia, it is a more complicated decision. Among the factors these consumers consider: how badly they want to watch a given show, how many people use their account, the shape of their household finances, and how much time they plan to spend across all of the films and shows available on a service.
Dalia is among a growing group of streaming customers who are getting choosier about when they pay for an ad-free experience and when they opt to save money. “Time is money. I will give my money to save time on ads for the one I’m using the most,” she said.
These so-called ad managers—those who sometimes pay for ad-free service and other times don’t—represented 46% of premium streaming-service customers with two or more subscriptions at the end of March, according to subscriptions analytics firm Antenna. That percentage is up from 39% two years earlier, when fewer streaming services offered ad-supported plans.
Meanwhile, the pool of people with two or more streaming subscriptions who always opted for ad-supported tiers across the services that offered them fell to 25% in March from 35% two years earlier. The portion of those subscribers who avoided ads completely given the choice grew to 29% from 26%.
Streaming services from Netflix to Disney+ have launched ad-supported plans over the past year, hoping to attract new customers willing to pay less in exchange for viewing advertisements. Amazon is also planning to launch a new ad-supported tier of its Prime Video streaming service, The Wall Street Journal reported earlier this month.
These subscriptions bring in more revenue per user than ad-free plans because streaming services benefit from the monthly subscription fee as well as revenue from ads sold. Netflix said in April that its new ad plan was generating more revenue per user in the U.S. than its standard, $15.49-a-month ad-free plan.
Ad-backed tiers of service are growing faster than ad-free plans, new data from Antenna show.
“If there’s an ad option, I’ll take it,” said Edward Taylor Connor Jr., 33 years old, of Florida, who pays for Hulu with ads as well as Netflix’s soon-to-be retired DVD service and its ad-supported plan. “It just doesn’t bother me,” he said.
People who paid for ad-supported tiers generally remained subscribers longer than those who avoided them, Antenna found, based on customer-retention rates across premium streaming services over a 12-month period.
There were no meaningful demographic differences in terms of ethnicity, gender, income or age between people who avoided, accepted and managed ad-supported tiers of service, according to Antenna.
The trend of customers managing when they do and don’t pay for ad-supported services means there are pockets of customers that advertisers can reach only on one service, Antenna said.
For example, of the Hulu customers who accept ads, 74% don’t have any other ad-supported premium streaming services, meaning the Disney-controlled streaming service is the only way advertisers can reach them, Antenna found.
Still, some consumers are likely to remain out of reach for advertisers looking for streaming audiences, even if the viewers have to pay more for subscriptions.
“They’re just an insult to my intelligence,” said Mark Libman, 67, who lives in a rural area south of Asheville, N.C. His subscriptions include ad-free versions of Netflix and Max as well as Amazon’s Prime Video. “They couldn’t pay me to watch ads,” he said.
middlechild
Mouseketeer
- Joined
- Nov 4, 2013
Anyone have a source for the rumor that Price Waterhouse Cooper (PWC) was brought in a month ago to set valuations on different Disney assets and IP?
middlechild
Mouseketeer
- Joined
- Nov 4, 2013
Three themes like can't run away from your troubles, don't get involved in someone else's, and laugh at your troubles are problematic and have to be erased from history. Themes from successful movies can be recast with non gender role, new castings, new forms of relationships and given 100's of millions for production which are specifically designed to impact public acceptance are failing. Hmm, can't figure this one out... There is just no WOW there, anymore. How about this idea for the next movie, Disney can have it free... A queen
has a daughter before being killed by her sister. The daughter marries a zebra. Then banishes her aunt before assuming the throne. How many people would pay to see that? Seems a lot like what is going on right now...
lion
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
Disney Tourist Blog's take on attendance figures.
https://www.disneytouristblog.com/a...ey-world-loses-marketshare-universal-orlando/
Attendance Increases As Disney World Loses Market Share to Universal Orlando
By Tom Bricke
https://www.disneytouristblog.com/a...ey-world-loses-marketshare-universal-orlando/
Attendance Increases As Disney World Loses Market Share to Universal Orlando
By Tom Bricke
- Joined
- Apr 29, 2004
Isn't PWC Disney's independent public accountant?
wabbott
DIS Veteran
- Joined
- Aug 4, 2021
That is correct.
https://thewaltdisneycompany.com/app/uploads/2023/02/2023-Proxy-Statement.pdf
The Board recommends that shareholders vote “FOR” ratification of the appointment of PricewaterhouseCoopers LLP as the Company’s independent registered public accountants for fiscal 2023.
Elijah Abrams
Mouseketeer
- Joined
- Feb 6, 2020
I bet PWC will convince Disney to sell the entire 20th Century Studios IP/catalog, with a few exceptions.
Disney Bobby
DIS Veteran
- Joined
- Jun 18, 2019
Interesting numbers. Thanks for posting that.
And if true, I think that means that no one can really win with streaming. Though Netflix is somehow reporting a profit with their gigantic library of owned and licensed content at around that $10/mo, so maybe it can be done once you hit a critical mass of subs?
I've said before that they could have gone the "arms dealer" route like Sony did (and coincidence or not, Sony is near an all time high, while DIS is near a 52 week low), it's always more profitable to sell to all sides in the (streaming) war. But I don't think Disney would want to give up that much control of it's core content. Iger hinted at working in licensing deals so I think they will try a middle ground of their own streaming and arms dealing some of the less core content, hopefully leading to some decent profits to replace the crumbling cable sector.
clarker99
DIS Veteran
- Joined
- May 15, 2019
There is no replacing the linear side at the current rate. They have obv shifted gears to 'try' and make Dis+ profitable. ESPN could give them hope but the tech giants are into live sports now and Disney cannot outbid an Apple, Amazon or Alphabet for rights.
Sony sat and waited. With hindsight we can see that was the correct call. And this may continue to be the correct path forward assuming they continue to make content people are willing to pay for.
I am reading that Netflix's profit margin was only 13% last quarter? And that has been shrinking over the last 6 Quarters?
https://www.macrotrends.net/stocks/charts/NFLX/netflix/net-profit-margin
You cannot afford any missteps under those conditions as Wall Street is focusing on the bottom line more and more.
Profits also been sliding recently
https://www.macrotrends.net/stocks/charts/NFLX/netflix/net-income
The streaming business is wild.
Yep, this is a very different animal.
Not sure if they report it (I can try and look later) but do you have DIS' profit margin for the last few years for the linear side of the business only? That's basically what streaming is supposed to replace so if it is much higher than 13%, and I suspect it is, it's going to be a high hurdle to replace it all.
HokieRaven5
DIS Veteran
- Joined
- Mar 5, 2020
Just what I gathered by fiscal year for just linear networks from each annual report of the last 5 years. Someone can feel free to back check it and correct:
2018 - 27% ($24.5B rev, $6.625B OI)
2019 - 30% ($24.8B rev, $7.479B OI)
2020 - 31% ($28.4B rev, $9.022B OI)
2021 - 29.9% ($28.09B rev, $8.407B OI)
2022 - 30% ($28.3B rev, $8.5B OI)
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