Disney's final revenue before the launch of the expected streaming service, Disney +, reminded investors that Disney is in a strong position and outperforms revenue estimates.
The company reported a quarterly revenue of $ 19.1 billion. It is estimated that it raised $ 19.04 billion. The company made a profit of $ 2.32 billion last year with a revenue of $ 14.3 billion. Yet Disney & # 39; s songs are almost across the board, including a huge boost from his studio & # 39; s – specific The lionking and theme park departments. The Disney earnings report states that the increase in "theatrical distribution results was due to the performance of The lionking, Toy Story 4 and Aladdin in the current quarter compared to Unbelievable 2 and Ant man and the wasp in the quarter of last year. "In fact, studio & # 39; s revenue for the quarter" increased 52 percent to $ 3.3 billion, " according to the report.
"Our solid results in the fourth quarter reflect the continued strength of our brands and companies," wrote CEO Bob Iger in the company's profit report. “We have completely transformed the Walt Disney Company over the last few years to focus the resources and tremendous creativity throughout the company on delivering an extraordinary direct-to-consumer experience, and we are excited to launch Disney + at November 12. "
Today's income is substantial. Disney + will be launched in five days. Future earnings reports will include executives' statements about the pace of Disney + growth, both in the United States and internationally. Analysts have predicted that Disney was able to reach up to 18 million subscribers in the first year thanks to a deal with Verizon that gives away a year of free service. By 2024, analysts predict that Disney will have 82 million subscribers. That is consistent with Disney & # 39; s own estimates; Christine McCarthy, the company's financial director, said investors in April that Disney expects to have between 60 million and 90 million worldwide subscribers by 2024.
It is an impressive number – and one that other companies also estimate. AT&T's H & Max is expected to collect 50 million subscribers within the US and 30 million more internationally. Apple's streaming service, Apple TV Plus, has no subscriber numbers, but CEO Tim Cook recently told Apple investors that because the service is basically free for part of his customer base, executives are not worried. Even Peacock, Comcast's streaming service, is trying to find a way to scale quickly by allegedly offering it to everyone for free.
The most important advantage of Disney has always been its intellectual property. Star Wars, Marvel, Pixar and Disney originals have a level of fame and admiration from dedicated fans who pursue other companies. Now, after the Disney acquisition of 21st Century Fox, that library also includes The Simpsons"Whole run. Unbeatable by David Attenborough documentaries on Netflix, Disney also has a deal with National Geographic to wear original series and specials.
Demonstrating the power of the Disney library is crucial for the company. A number of Disney titles are currently unavailable on the platform at launch due to rights issues. Newer movies such as Star Wars: The Last Jedi and Avengers: Infinity War are linked in a deal with Netflix that expires at the end of 2019. Other titles such as Star Wars: The Force Awakenswere tied up in an earlier deal with Starz. As first reported by The edge, Disney has signed a new deal with the company that allowed it The Force awakens available at launch – in return, Disney will display an advertisement for Starz on the Disney + sign-up page for new customers.
Iger has been telling investors for some time that it will require a significant amount of investment from the company to break the mess. That does not alter the fact that the number of theatrical films being released – Disney owns around 35 percent of the 2020 calendar year – but the focus is on building Disney + into an important engine for the company. Iger called the pivot in an interview with the consumer "absolutely necessary" Bloomberg, adding: "This is no doubt, the future of the media." It is a feeling that Iger previously told investors in August.
"It is clear that we also set ourselves up so that we can be resilient – probably more resilient than our competitors – if the traditional side erodes so considerably that it is not as viable as it has been as a company," Iger said.
Disney + becomes the permanent legacy of Iger – a remarkable achievement as Iger was responsible for some of Disney's greatest acquisitions, including Marvel Entertainment, Pixar, Lucasfilm and 21st Century Fox. Whether Disney + is successful will take a few years to see, as the latest major streaming newcomers find their way into the public sphere. Still, investors on Wall Street are not optimistic about the potential of Disney. It's not a Netflix killer, but investors believe it's the streaming service with the greatest chance of success.