Disney+ and Hulu: a flexible pitch to consumers

Report Overview

Disney+ and Hulu: a flexible pitch to consumers

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Disney+ and Hulu: a flexible pitch to consumers
Disney now controls third-party content aggregator Hulu, which has 25 million subscribers in the US. Ramped up by Fox content, Hulu’s operating losses are expected to peak in FY2019 at $1.5 billion, with profits by FY2023 or FY2024
Serving only Disney content, Disney+ launches in the US at the low price of $6.99/month this November, and in 2020 in Europe and Asia Pacific in 2021, aiming to reach the challenging goal of 60-90 million subscribers in five years
ESPN+, Hulu, Disney+ combined could contribute 13% of Disney’s revenues by 2024, which does not intend to disturb existing channels and windows for catalogue and new content, aside from withdrawing content from Netflix

Contents

Disney makes a careful pivot to VOD

Hulu: between pay-TV and OTT

Disney+ will find its niche of families with kids

  • In Europe and the rest of the world
  • Questions (and problems) of tech

Investing for the future

Conclusion: survival of the fittest

List of charts/tables

Figure 1. Disney revenues by division FY2018 ($bn)

Figure 2. Franchise films availability on Disney+ in year one of service

Figure 3. Expected operating losses ($m)

Figure 4. Disney’s estimated revenues from top media brands ($bn)