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In addition to Netflix and Disney, Amazon, Apple and Paramount, among others, are also investing heavily to attract viewers who want to regularly stream new series and films at home.
The content decides
“We’ve reached a point of streaming saturation,” commented Forrester analyst Mike Proulx. “Consumers have a limited amount of time and money to spend on the ever-growing streaming services. Ultimately, consumers will follow the content.” And this is where Disney has strong material on offer, including the “Star Wars” and “Marvel” brands.
According to Forrester data, 51 percent of US adult users of a streaming service remain subscribers because they don’t want to miss out on exclusive content. “A constant stream of new content is critical to retaining subscribers,” concludes Proulx.
Sophie Lund-Yates, senior equities analyst at Hargreaves Lansdown, also believes Disney’s streaming offering can continue to grow, unlike its competitor Netflix. Disney’s “classics that slumber on the digital shelves are timeless and, above all, cash cows that can be retrieved again and again,” she explains.
Less-expensive subscription plans that include advertising, like the ones Disney plans to introduce this year, could help retain subscribers even in a recession when consumers’ household incomes come under pressure, Lund-Yates said. In addition, Disney has made “phenomenal progress” in the area of theme parks, despite the slump in international visitor numbers in the wake of the corona pandemic – and with admission prices of up to $ 1,200 for multi-day experiences.
Disney’s total revenue rose 23 percent to $19.25 billion in the quarter just ended. The clear plus was also due to the amusement parks, which cashed in. Profits, on the other hand, almost halved to $470 million, which was partly due to tax increases.
The Disney Group will be 100 years old next year. In addition to the amusement parks and the film business with the streaming offer, Disney also owns cruise ships and various television channels.
With material from Reuters.
More: Inflation in the US at 8.3 percent – “American living standards are eroding”
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