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this post was submitted on 10 Aug 2023
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I suspect they operate at a loss to increase their market share, and that Disney as a whole still is quite profitable.
And then we are back to the streaming providers saying "this sharing business must stop", while they constantly move shows around to ensure you need all services and end up paying more than a cable subscription for streaming.
Yep media companies as we know them best.
Exactly on the last point, but not the different services bit. Operate at a loss while in customer acquisition mode and gain exposure. Then adjust cost. You seem to get it, but I don't get how you understand that but don't also see why it is not sustainable to operate at a loss forever. So you need to gain customers and or increase cost per sub.
As for many services... DTC kind of fucked things up. Bundles gave users way too much and resulted in perceived bloat or over pay, but the model did allow cheaper costs to get it all, and security of more stable subscriber numbers. In the past all TV providers did was make and provide content to cable providers to distribute. Cable providers did the distribution infrastructure, stb, and billing and marketing of the bundle. Now each TV provider must handle their own marketing, billing, app development, etc. That's a bit more cost per TV provider. DTC and steaming could only remain cheap if cable subs stayed strong. If cable subs drop that revenue needs to be made up on the streaming service. I predict digital streaming bundles will make a come back, but not sure if cable providers, digital provides like a fubo, or someone else will offer the bundles. Bundles should offer lower cost to customer and provide more stable revenue to streaming providers and hopefully can be a win win for both.
You talk about one division of Disney and I talk about the whole company.
I am absolutely sure The Walt Disney Company knows exactly what they are doing with their streaming division and they have planned with that loss from day one, and I guess their plan is: "Spend X to get a user base of size Y", that's why I don't have any sympathy for them.
Disney don't have any financial problems:
If their streaming service is losing a billion/yr for some years it's no big deal.