Streaming Normally Isn't Profitable, But Somehow Disney Made It So

TV & Film

Dec 25

Despite the many streaming services currently available, such as Netflix, Hulu, Amazon Prime, and many more, most companies have been losing money in the long run. This is despite the lack of a need for shipping, handling, and manufacturing of physical items associated with physical media distribution. However, there is one streaming service that has finally become profitable: Disney+.

After years of losing a total of $10 billion up until that point, Disney has shown that it profited off of the streaming service, gaining a total of $321 million in November, after a large number of cutthroat business decisions, including several layoffs and increases in price. It is speculated that a solid year of films, including family-friendly films like Moana 2, Inside Out 2, and the definitely not family-friendly flick Deadpool And Wolverine. It should also be noted that the inclusion of Hulu and ESPN+ in bundles with Disney+ may have also led to the increased profits seen.

Disney certainly has a large portion of the audience, with Disney’s 11.1% of TV ratings well ahead of the 7.7% held by Netflix. 43% of Disney’s TV ratings came from Disney+, showing that the platform is still very much relevant in the public eye. “It has taken years to build this business, and it will take yet another few years before returns become anything more meaningful, but the promised land is finally in sight,” Wall Street analyst Robert Fishman said of steaming.

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