9/14/2023 0 Comments Disney sales receipts from 1990Indeed, on the company’s earnings call, Chapek framed streaming losses as being at “a turning point,” and outlined a three-pronged plan for profitability including the higher prices and ad tier, “meaningful rationalization” of marketing spend, and more efficient content spend. Overall, Wall Street is beginning to look toward profitability in streaming, as the land-grab for subscribers appears to be somewhat subsiding. Hitting that fiscal 2024 profitability target is critical for Disney, which is planning price increases to go alongside its new ad-supported Disney+ tier, both of which should meaningfully increase ARPU. Notably, average revenue per user (ARPU) fell at both Disney+ and Hulu, with the company citing more subscribers to the Disney Bundle as one of the reasons. “By realigning our costs and realizing the benefits of price increases and our Disney+ ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future.” “The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate,” Chapek said. YouTube Ads Are Back on an Upswing as Revenue Hits $7.7B
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