The Disney Plus streaming service has been around for five years, but just got its revenue into the black. That said, the media platform is on trend to keep the House of Mouse afloat in 2025. So, how did this floundering brand entity learn to fly?
Spoiler: there was no pixie dust used in this miraculous turnaround.
Disney’s Streaming Revenue Wasn’t Always So Magical…
As we mentioned earlier, Disney Plus premiered five years ago in November 2019. However, the platform was not the immediate hit that you would suspect…
THE STREAMING SERVICE WAS LOSING AN AVERAGE OF $4 BILLION ANNUALLY UNTIL 2022!
Via CNBC
Historically, this has been the case for most streaming services since their inception. Notable examples include Paramount, NBC Universal, and Warner Bros. Discovery.
However, the tides are turning in the right direction. And for Disney in particular, it is due to specific, smart strategy changes…
The Disney Magic that Turned Around Its Streaming Revenue
Once the company saw that Disney Plus was struggling, leadership went into defense mode and adjusted focus.
The brand’s first move was to pull back on creating original content for the platform. Doing so immediately cut millions of dollars in operating expenses.
Next, Disney wisely partnered with other streaming companies like ESPN to add content without losing revenue…
This had the additional benefit of adding more subscribers to its service and justified a higher cost per month. For Disney, this translates to a projected increased revenue of $875 million in 2025 from streaming.
But on top of all that, the House of Mouse’s success is having a ripple effect across the industry…
Will Streaming Industry FINALLY Have a “Happily Ever After”?
Naturally, the other media platforms that partnered with Disney benefited from their collaboration.
Nevertheless, competitors are copying the Disney playbook to similar success. (See the $77 billion NBA broadcasting deal.)
These statistics are a stark contrast to the post-pandemic drop in streaming subscriptions.
At this moment, Disney and other streaming services just may be on track for a fairy tale ending…
As long as they continue to follow their successful actions.
Be Great,
GCTV Staff
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