📺 Profitability in the streaming world!
Media companies are reporting growth in streaming this year due to price increases, password sharing restrictions and mass layoffs. However, profitability remains volatile.
🐭Disney $DIS reported an operating profit of $47 million in its Direct-to-Consumer (DTC) division , which includes Disney+ and Hulu, compared to a loss of $587 million in the prior-year period. But watch out, the company expects the division's results to be back in the red next quarter.
Comcast $CMCSA reported a loss of $639 million and Paramount Global $PARA $286 million in its streaming divisions.
The📈 Warner Bros Discovery $WBD, the only one of the larger media players to report steady profitability in its streaming unit. The company has been helped quite a bit by the results of the pay TV service we know asHBO.
💰Netflix $NFLX made a profit of$2.6 billion in the first quarter .Disney CEO Bob Iger called Netflix' s "the gold standard" in the streaming industry.
🚀 While streaming platforms are seeing growth, the constant changes in the industry remain a challenge. As advertising revenues continue to decline significantly, it will be difficult, perhaps impossible, to achieve the margins of the cable TV days, which were around 30-40 %.
📊 Share DTC of advertising, which is more personalised and targeted directly at consumers, has increased and represents a significant proportion of total advertising spend.
New packages such as StreamSaver From Comcast or a combination of services Disney+, Hulu and Max could reduce subscriber churn and attract new subscribers.
Personally, I'd need one platform for everything, I'm always intrigued by an interesting movie on some other platform. How about you?
Which streaming companies do you like the most?
