Report Overview

Consumers endorse Disney’s digital transition

­­­­Recruiting 29 million subscribers in twelve weeks, Disney+ has stormed the US market. Furthermore, the two million gain achieved after the holidays and the completion of The Mandalorian, relatively high ARPU, and rising Hulu and ESPN+ subscriptions bode well

Conversely, booming (but expected) losses of direct-to-consumer platforms—due to increase as Disney+ launches in Europe in March—are undermining group profitability

But, with a total of 64 million direct subscribers Disney can now claim a size and momentum that puts it in the league of the pure digital platforms—crucially backing its stock market narrative

Contents

Results highlights

Scale benefits in legacy media

Eroding profitability

Uncertainty over Disney+’s European partnerships

List of charts/tables

Figure 1: Video providers subscriptions, cable and OTT, international (m)

Figure 2: Disney revenue trends by source ($m)†

Figure 3: Disney’s SVOD subscribers (m)

Figure 4: Disney revenue per paying subscriber ($/month)

Figure 5: 2019 box office market share, international (%)

Figure 6: 2019 US channels revenue share (%)

Figure 7: Operating margins of media networks

Figure 8: Disney operating income by segment ($m)