The company released its earnings numbers for the third quarter of fiscal 2020 and, as expected, its parks and cruises business took a hammering due the coronavirus pandemic. However, there was a segment that did stand out: streaming.
Disney released its earnings numbers for the third quarter of fiscal 2020 and, as expected, its parks and cruises business took a hammering due the coronavirus pandemic. However, there was a segment that did stand out: streaming. In fact, the company announced it now surpasses 100 million paid subscribers for its full direct-to-consumer portfolio, which includes Disney+, ESPN+, and Hulu.
In detail, The Walt Disney Co. is still reeling from the impact of the ongoing coronavirus, reporting a net loss of $4.7 billion for its fiscal third quarter. The company reported revenue of $11.8 billion during the period, which was down 42% from the $20.3 billion it reported during the same quarter last year.
The $4.7 billion net loss equated to a disminution of $2.61 per share, that after Disney reported per-share earnings of 79 cents during the year-prior period. Analysts were anticipating a loss of 64 cents per share.
“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” said Bob Chapek, CEO of Disney, in a statement. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions — a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company,” he added.
The studio division, which includes theatrical as well as TV and streaming distribution, garnered $1.7 billion in the quarter, compared to the $3.8 billion a year ago. The media networks business has remained stable, with revenue dropping just 2% to $6.6 billion. Disney’s direct-to-consumer segment, which includes its new Disney+ streaming service, was the only division to see an increase in revenue, bringing in roughly $4 billion in revenue, compared with the $3.9 billion during the same quarter a year ago.
● “MULAN” TO SKIP U.S. THEATERS FOR SEPTEMBER DEBUT
During the company’s earnings call, Chapek also announced that live-action remake of the animated film “Mulan” will be released on Disney+ for premium video on demand on September 4, skipping the national theatres. Subscribers in Canada, Australia, New Zealand and parts of Western Europe will also be able to stream the movie at slightly varied prices.
The movie’s original release had been pushed back as theaters were forced to close during the pandemic. It will be Disney’s first effort to sell content on Disney+, on top of the monthly $6.99 subscription.
Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses” Bob Chapek CEO of Disney