Most people have heard of Netflix and people willingness to pay for streaming services to their devices and in true capitalism fashion – other companies saw the success of the company and wanted to duplicate it. The big questions about streaming services are how many services will the average consumer buy? and when does the consumers switch between the many services available?
At the moment a key streaming service is Disney, most of us have much goodwill towards the company and its franchise movies including Marvel movies. In early February Disney reported on its success on its streaming services – Disney expected 20 million subscribers, demand exceeded expectations, they reached 28.6 million subscribers.
In a column Lisa Richwine and Neha Malara of Reuters, Netflix had 67.7 subscribers in North America, subscribers at Hulu, a streaming service Disney now controls, climbed to 30.7 million as of Monday, the company said. ESPN + customers reached 7.6 million this week.
Disney Chief Executive Bob Iger told CNBC 50% of the Disney + subscribers came from the company’s own website. Mr. Iger said I believe we are now well positioned to not only withstand the disruptive forces of technology but thrive in today’s increasingly dynamic media environment.
Earnings for the quarter grew with help from healthy business at Disney’s theme parks and the strong performance of animated movie Frozen 2.
Revenue increased to $20.9 billion up 36% from a year earlier. The Disney earned $1.53 a share up from $1.44.
In a world wide business, China has the coronavirus concerns, there are always concerns in a world wide company.
Linking to dividend paying companies, in business there are always companies copying other companies – success breeds success. The top companies retention rates or people renewing on a year to year basis is higher, with streaming services that is a key statistic to look for. Not only how many people signed up, but how many people renewed their service for more than one year. Disney is a large company in the communications world that cross sells its products very well, which is the reason most of us never tire of Disney, but quality and emotion is important in the product.
There are more questions than answers, till the next time – to raising questions.