Disney’s Big Emmy Wins May Build Streaming Momentum

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As a long-time Disney enthusiast and someone who’s seen my fair share of Mickey Mouse magic, I must say, the Emmy Awards night was nothing short of magical for Bob Iger and his team at Disney! The prestigious wins for shows like “The Bear,” “Shogun” and “Abbott Elementary” on Hulu and Disney+ not only validate their creative prowess but also serve as a powerful weapon in the streaming wars.

On Sunday evening, Disney was triumphant at the Emmy Awards, collecting nine awards. This victory provides additional firepower to the media conglomerate led by Bob Iger as it continues its battle in the streaming competition.

As a devoted fan, I couldn’t help but feel elated as FX’s “The Bear” might not have snatched the best comedy award, but it sure did shine with an impressive haul of acting accolades. Meanwhile, “Shogun” from the same network took home the best drama prize, further cementing its reputation. Last week, Disney broke records at the Creative Arts Emmys, with a whopping 51 awards in total, and “Shogun” alone claimed an impressive 14 of those!

The business anticipates that the acclaim and attention the Emmy Awards have given to Hulu and Disney+’s top shows may increase their streaming user base over the next few months, furthering a plan Disney announced previously to achieve long-term profitability from its streaming platforms.

During its latest financial quarter, Disney reported an increase in Disney+ subscribers (excluding Hotstar) to 118.3 million, along with a 2% growth in Hulu subscribers to reach 46.7 million. Notably, Disney posted a profitable streaming quarter, surpassing expectations, and anticipates further improvements in profit margins during the fourth quarter.

During that period, executives linked a large portion of the quarter’s profitability to the demand for content on our streaming platform. Bob Iger emphasized this during the earnings conference call, pointing out the company’s 183 Emmy nominations and popular shows like Shogun, The Bear, and Abbott Elementary, stating that “the success we’ve been experiencing with streaming is largely due to our creative achievements.

At the Emmy Awards held on Sunday, Iger reinforced his previous sentiments during the red carpet event. He lauded the executives at his company for their exceptional collaboration with creative minds. “After 50 years in business,” he stated on the red carpet, “I can confidently say that there’s nothing more crucial than a brilliant creator and innovative creativity.

However, as Iger pointed out during the earnings discussion, the appeal of the content and the anticipated momentum from upcoming releases such as Inside Out 2, bolster Disney’s ability to raise prices. In fact, Disney has already announced a price hike, with the monthly cost for both its ad-supported and ad-free tiers on Disney+ increasing by $2 each, effective October 17th. Interestingly, this slight increase makes The Disney Bundle, which combines the ad tiers of Disney+ and Hulu for $10.99 per month, only slightly more expensive than subscribing to a single service.

Simultaneously, Disney revealed a temporary, reduced cost for its ad-supported plan on September 12, aiming to attract more subscribers during their fourth quarter. Previously, the company had assured shareholders that their streaming service would become profitable by the end of Q4 in 2024.

I’m caught up in an exciting competition between Disney and YouTube for the dominance in overall TV viewing time. According to Nielsen’s latest Media Distributor Gauge, YouTube managed to outshine Disney for that particular month, but when it comes to the whole year so far, Disney still holds the lead.

Iger noted that price hikes usually result in only minor subscriber losses for the company. However, by merging services, Disney might also reduce the number of people canceling their accounts. This strategy aligns with Disney’s goal of providing a unified streaming service offering a wider variety of entertainment experiences.

Iger stated that the aim is to boost user interaction on our platform. This involves expanding our content selection, as demonstrated by the addition of news and the introduction of ESPN section, along with a strategy to present multiple options for consumers to purchase content from all our creative outlets.

The company’s efforts to become profitable have been boosted by their recent clampdown on password sharing, initiated in June, and this move has reportedly faced no negative feedback whatsoever. Additionally, the expansion of their advertising segment is also contributing to their progress.

Although Disney claims minimal subscriber loss due to these strategies, a Bank of America report dated August 27 hints at potential indications of a possible decline in streaming spending by 2024. Moreover, the rate of growth in households with one or more streaming services is also slowing down. This slowdown could be an indication of the maturity of the streaming market and the point where the restrictions on password-sharing among different services might have reached its maximum impact.

As a gamer, I’m starting to notice that I might need to tighten my budget. With the latest findings in the report, it seems like more people are becoming mindful of costs and may be willing to trim down their streaming services or opt for ad-supported ones in the future.

Disney’s premium content and discounted ad-tier, along with other strategies, might play a crucial role here. Given the decrease in park attendance that executives described as “a slight slowdown, but this is being compensated by the success of our entertainment business,” the financial viability of their streaming services will become increasingly significant.

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2024-09-16 07:55