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Tag: Bob Chapek

  • Flexibility is the future of cinema exhibition, says Disney CEO Bob Chapek

    Flexibility is the future of cinema exhibition, says Disney CEO Bob Chapek

    Mumbai: So how does the world of cinematic exhibition look like currently and how will it shape up beyond the pandemic? To get a perspective, let’s take a look at how Walt Disney CEO Bob Chapek sees it. Speaking at the JP Morgan media summit last week, Chapek summarised the future of cinema exhibition in a single word, ”flexibility.”

    Chapek revealed that the Covid pandemic has redefined cinema exhibition, with customer behaviour changing due to the new normal. According to Chapek, ”flexibility” plays a crucial role in determining the future of cinematic exhibition, where films will be either released in theatres with a short window before going the OTT way or a hybrid release mechanism where movies are streamed simultaneously in theatres as well as OTT platforms, distinct from exclusive OTT premieres. 

    “We are looking at exclusive theatrical releases with a dramatically short window between the first and second offerings or a simultaneous theatrical premiere along with our Disney+ offering and our direct Disney+ premieres. We are trying to offer consumers more choices as they gain confidence in how they want to return to theatres. It helps us build our franchises. But as we have seen domestic box offices, it seems to be recovering in some markets. But we are seeing some hesitancy in returning to normal like back in 2019,” said Chapek. 

    Chapek added that shortening the theatrical window before OTT releases to 45 days was necessary as audiences are less patient to watch their favourite content. “We are celebrating the flexibility that we have gotten into. If you are a fan, six weeks is a long time. Six days, maybe, but consumers are driving for shorter windows. They have the power to take that call and we are a consumer-friendly company. We saw a lot of midnight fervour when new content was released on Disney plus. And that is the reason why we chose the 45-day theatrical window,” revealed Chapek. 

    Citing the example of Black Widow, he said big movies that demand a theatrical watch will be released on big screens, and also have a simultaneous OTT release that will allow people to enjoy the flick in the comfort and safety of their homes as well. 

    “If it is a big tent pole theatrical franchise, fans tend to consume the film in theatres. For Black Widow, we had to give the theatrical exhibition a chance, but we didn’t put all our eggs in the same basket. We gave the consumers a choice; watch it in a theatre or in the safety of your homes. The theatrical marketplace will recover more fully, in time. Flexibility is a good thing,” added Chapek.

    Black Widow is one of the most anticipated Hollywood movies of the year, as it is the 24th installment in the much-celebrated Marvel Cinematic Universe. Starring Scarlett Johanssen in the lead role, the film will hit theatres on 09 July, along with a simultaneous Disney+ Premium streaming for US$30.  

  • Disney CEO Bob Chapek says Star India is a shining example

    Disney CEO Bob Chapek says Star India is a shining example

    MUMBAI: The Walt Disney Co CEO Bob Chapek is extremely bullish on Star India which it acquired as a part of its Fox acquisition. During the Morgan Stanley Technology, Media and Telecommunications Conference in the US on 2 March, Chapek said, “Star India has so much there, to unwind and unpack. From a broadcaster’s standpoint it is India’s number one broadcaster. India is one of the few markets in the world where TV viewing is actually up.”

    He added that under Star, Disney has the leading sports portfolio, which is critically important, and a leading content engine under FoxStar Studios.

    “On top of this you layer on the Hotstar business that has got 17,000 hours of original programming every year, that is fantastic and we believe it is the ultimate streaming destination in south east Asia and in India. We are pleased with the way the business has unfolded in south east Asia and India,” he explained.

    He was quite confident that Hotstar would scale from 30 million to 100 million paid subs by 2024, pointing out to the investment in programming that the company is making. “But at the same time you also realise that south east and India is a very unique market. We have got distribution relationships with Jio in India and Telekomsel in Indonesia. But it does not end here: the product localisations are absolutely critical here because there’s low broadband speeds and it is a mobile first market. It's not a one size fits all. India is a shining example of the need to be unique and cater to that market.”

    Play it again, Bob. Say it again!

  • Tony Chambers to lead Disney’s theatrical distribution

    Tony Chambers to lead Disney’s theatrical distribution

    MUMBAI: Disney veteran Tony Chambers has been promoted to EVP of theatrical distribution. He’ll oversee both domestic and international film distribution as well as home entertainment.

    Chambers replaces Cathleen Taff, who took over global distribution when Dave Hollis left in 2018. Taff is still working with Disney as production services, franchise management and multicultural engagement president. The new reorganisation which Disney underwent months ago puts more focus on streaming services, with the distribution side figuring out the better route for a film’s release: theatrical or Disney+.

    Due to the Covid2019 pandemic Disney has already sent movie releases among others to its news streaming service. However, CEO Bob Chapek during the studio’s early December investor day indicated that Disney wasn’t going to turn its back on theatrical once things get back to normalcy; many of the big screen IP responsible for series being spawned on Disney+.

    Chambers will report to platform distribution president Justin Connolly. Connolly reports to Disney media & entertainment distribution chairman Kareem Daniel.

    He will oversee and integrate all distribution activities across theatrical and home entertainment, including domestic and international theatrical distribution of all films produced and released by Walt Disney Studios, Walt Disney Feature Animation, Pixar Animation Studio, Marvel Studios, Lucasfilm, 20th Century Studios, Blue Sky Studios and Searchlight Pictures.

  • Bob Chapek realigns roles at Disney Studios Content

    Bob Chapek realigns roles at Disney Studios Content

    MUMBAI: The shuffling is continuing at the Walt Disney Co as CEO Bob Chapek works on creating an organisation that can prosper going forward. In Disney’s latest announcement, Chapek named Alan Bergman as chairman of Disney Studios Content, with Alan Horn who was earlier co-chairman serving as its chief creative officer from 1 January 2021.

    “Our studios are unmatched in their ability to create incredible cinematic experiences, and with this new structure, we are ensuring a vital continuity of leadership,” said Chapek.

    Bergman’s responsibilities will expand to oversee creative, production, marketing, and operations for Disney Studios Content, which encompasses the world-renowned production studios Disney, Walt Disney Animation Studios, Pixar Animation Studios, Marvel Studios, Lucasfilm, 20th Century Studios, Searchlight Pictures, and Blue Sky Studios, as well as Disney Theatrical Productions. Horn, on the other hand, will focus on the creative aspects of the studios’ content pipeline, working in partnership with Bergman on its creative approach. Both will report to Chapek.

    The leads of each production studio will continue to dual report to Bergman and Horn on creative matters, including Twentieth Century Studios president Steve Asbell; Blue Sky Studios co-president Robert Baird; Walt Disney Studios Motion Picture Production president Sean Bailey; Pixar Animation Studios chief creative officer Pete Docter; Marvel Studios and Marvel president and chief creative officer Kevin Feige; Searchlight Pictures chairman Stephen Gilula; Lucasfilm president Kathleen Kennedy; Walt Disney Animation Studios chief creative officer  Jennifer Lee;  Searchlight Pictures chairman Nancy Utley and and Disney Theatrical Productions president  Thomas Schumacher.

    Bergman is a 24-year veteran of Disney. Prior to being named co-chairman in 2019, he served as president of The Walt Disney Studios from 2005 to 2019. He played a leading role in the integrations of Pixar Animation Studios, Marvel Studios, Lucasfilm, and the Twenty-First Century Fox film studios. His tenure at Studios has included the release of 25 films that have earned at least $1 billion at the global box office.

    Horn joined Disney in 2012 when he was named chairman of The Walt Disney Studios, becoming co-chairman and chief creative officer in 2019. With a career spanning nearly 50 years, Horn is one of the industry’s most influential and respected executives. He served as president and chief operating officer of Warner Bros. from 1999 to 2011, during which it was the top-performing studio at the global box office seven times and released numerous critically acclaimed films and box office hits including the Harry Potter series, Batman Begins, The Dark Knight, The Departed, Million Dollar Baby, and the Ocean’s Eleven trilogy. He co-founded Castle Rock Entertainment, where as chairman from 1987 to 1999 he oversaw a diverse collection of popular, acclaimed film and TV properties including A Few Good Men, The Shawshank Redemption, When Harry Met Sally, and Seinfeld. He also served as president and chief operating officer of Twentieth Century Fox Film Corp from 1985 to 1986 after getting his start in the media business in 1973 at Norman Lear and Jerry Perenchio’s Embassy Communications, where he ultimately held the role of chairman & chief executive officer.

    Together, Horn and Bergman have presided over a time of significant growth at The Walt Disney Studios, including the 2012 integration of Lucasfilm and the 2019 integration of the Fox film studios, as well as the studios’ expansion into the production of content for Disney’s streaming services. During their tenure, The Walt Disney Studios set numerous records at the box office, surpassing $7 billion globally in 2016 and 2018 and $11 billion in 2019, the only studio ever to have reached these thresholds.

    Among the Studios’ recent successes are Disney’s live-action Beauty and the Beast, Aladdin, and The Lion King; Walt Disney Animation Studios’ Frozen, Zootopia, and Frozen 2;  Pixar’s Coco, Incredibles 2,  and Toy Story 4; Lucasfilm’s  Star Wars: The Force Awakens, Rogue One: A Star Wars Story, Star Wars: The Last Jedi, and Star Wars: The Rise of Skywalker; and Marvel Studios’ Black Panther, Captain Marvel, Avengers: Infinity War, and Avengers: Endgame, the latter of which is the highest grossing global release of all time.

  • Walt Disney Co witnesses slow recovery in Q4

    Walt Disney Co witnesses slow recovery in Q4

    NEW DELHI: The Walt Disney Company reported total revenue of $14,707 million in Q4, witnessing a decline of 23 per cent year-on-year (y-o-y). While parks, entertainment, products, studio entertainment business continued to register a dip, direct-to-consumer & international and media revenue saw an upsurge.

    The media revenues for the quarter stood at $7213 million, up 11 per cent year on year. The d2c & international revenue stood at $4853 million for the quarter and witnessed an upsurge of 41 per cent y-o-y. 

    Diluted earnings per share (EPS) from continuing operations for the fourth quarter was a loss of $0.39 compared to income of $0.43 in the prior-year quarter. Excluding  certain items affecting comparability, diluted EPS for the quarter was a loss of $0.20 compared to  income of $1.07 in the prior-year quarter. EPS from continuing operations for the year was a loss of $1.57 compared to income of $6.26 in the prior year. Excluding certain items affecting comparability, EPS for  the year decreased to $2.02 from $5.76 in the prior year. 

    The most significant adverse impact in the current quarter and year from Covid2019 was approximately $2.4 billion and $6.9 billion, respectively, on operating income at parks, experiences and products segment due to revenue lost as a result of the closures or reduced operating capacities. 

    Media Networks revenues for the quarter increased 11 per cent to $7.2 billion, and segment operating  income increased 5 per cent to $1.9 billion. 

    Cable Networks revenues for the quarter increased 11 per cent to $4.7 billion and operating income  decreased 7 per cent to $1.2 billion. The decrease in operating income was due to lower results at ESPN,  partially offset by increases at FX Networks and the domestic Disney channels. 

    Broadcasting revenues for the quarter increased 10 per cent to $2.5 billion and operating income increased  47 per cent to $553 million. The increase in operating income was due to affiliate revenue growth and lower  network programming and production costs and decreased marketing expenses, partially offset by a timing  impact from new accounting guidance. 

    Advertising revenues were comparable to the prior-year quarter as lower average network viewership was offset by the benefit of an additional week in the current quarter, higher network rates and an increase  in political advertising at the owned television stations. 

    Parks, Experiences and Products revenues for the quarter decreased 61 per cent to $2.6 billion, and segment  operating results decreased $2.5 billion to a loss of $1.1 billion. Lower operating results for the quarter  were due to decreases at both the domestic and international parks and experiences businesses. 

    Studio Entertainment revenues for the quarter decreased 52 per cent to $1.6 billion and segment operating  income decreased 61 per cent to $419 million. The decrease in operating income was due to lower theatrical and  home entertainment results. 

    Direct-to-Consumer & international revenues for the quarter increased 41 per cent to $4.9 billion and  segment operating loss decreased from $751 million to $580 million. The decrease in operating loss was  primarily due to improved results at Hulu and ESPN+, partially offset by higher costs at Disney+, driven  by the ongoing rollout and a decrease at our international channels. 

    The improvement at Hulu was due to subscriber growth and increased advertising revenues driven by  higher impressions, partially offset by an increase in programming and production costs due to higher  subscriber-based fees for programming the live television service. 

    Higher results at ESPN+ were driven by subscriber growth and higher income from Ultimate Fighting  Championship pay-per-view events. 

    The Walt Disney Co CEO Bob Chapek said, “Even with the disruption caused by Covid2019, we’ve been able to effectively manage our  businesses while also taking bold, deliberate steps to position our company for greater long-term growth. The real bright spot has been our  direct-to-consumer business, which is key to the future of our company, and on this anniversary of the  launch of Disney+ we’re pleased to report that, as of the end of the fourth quarter, the service had more  than 73 million paid subscribers – far surpassing our expectations in just its first year.” 

  • The Walt Disney Co’s Q4 gains: IPL boosts Disney+Hotstar subs

    The Walt Disney Co’s Q4 gains: IPL boosts Disney+Hotstar subs

    KOLKATA: It has been only one year since Disney+ entered the streaming war but the growth has been phenomenal. The streaming service from The Walt Disney Company (Disney) has reached 73.7 million subscribers as of 3 October. Disney+Hotstar has pushed the growth contributing around 25 per cent of the global subscribers which effectively makes for around 19 million subscribers.

    “Disney+ ended Q4 with 73.7 million paid subscribers or an increase of over 16 million subscribers versus Q3. Disney+ Hotstar subscriber additions were the largest contributor to this increase, driven by the start of the delayed IPL season. Disney+ Hotstar subscribers now account for a little over a quarter of our global subscriber base. Disney+ overall ARPU this quarter was $4.52. However, excluding Disney+ Hotstar, it was $5.30,” Disney senior executive vice president and chief financial officer Christine McCarthy said in an earnings call.

    This means that Disney+Hotstar’s ARPU is at about 78 cents or around Rs 58.

    Disney+ entered India coupling with its existing service Hotstar, which the mouse house  took over as a part of its Twenty First  Century Fox acquisition in April. The rebranded service Disney+Hotstar has  signed up around 19 million subscribers in six months which is no small feat, especially in a crowded market like India.

    Originally, Disney planned the launch in March with the beginning of IPL 2020. Unfortunately, the Covid2019 crisis forced the company to change the plan. Although it could not exploit the unparalleled popularity of IPL at its launch, it is reaping the benefits now. Moreover, the timing of launch may have also worked in its favour as the lockdown has massively boosted the OTT ecosystem.

    Disney+Hotstar contributed around 15 per cent of Disney+ overall subscriber base in Q3. The service can grow its base faster as it has expanded its footprint to Indonesia in September. The company also announced its debut in Singapore on 1 November

    The giant media conglomerate is gradually focusing more on direct-to-consumer (DTC) business making up for its late entry in the game. “We are going to continue to ramp up our investment in DTC and we will be heavily tilting the scale from our linear networks over to our DTC business as we see it as a primary catalyst for growth,” Disney CEO Bob Chapek commented.

    Disney’s direct-to-consumer and international segment revenue grew 41 per cent to $4.9 billion in Q4, while segment operating loss declined from $751 million to $580 million, as a result of better results at Hulu and ESPN Plus.

    “The real bright spot has been our direct-to-consumer business, which is key to the future of our company, and on this anniversary of the launch of Disney+ we’re pleased to report that, as of the end of the fourth quarter, the service had more than 73 million paid subscribers – far surpassing our expectations in just its first year,” Chapek said.

  • Disney to launch international d2c OTT offering under Star brand in 2021

    Disney to launch international d2c OTT offering under Star brand in 2021

    KOLKATA: The Walt Disney Company (Disney) is going more aggressive on streaming. It will launch an international direct-to-consumer general entertainment OTT offering under the Star brand in India in the year 2021.

    The offering will be rooted in the content from the production engines and libraries of ABC Studios, Fox Television, FX, Freeform, 20th Century Studios and Searchlight. While in many markets the offering will be fully integrated into Disney+ platform from both a marketing and a technology perspective, it will be distributed under the Star brand in India.

    “In terms of the general entertainment offering internationally, we want to mirror successful Disney+ strategy by using our Disney+ technical platform, rooting it in content that we already own and distributing it under a successful international brand that we also already own which is, of course, Star and then bringing it to market in a very close association to Disney,” The Walt Disney Company CEO Bob Chapek said in the earnings call after Q3 results. 

    “In terms of the premier access idea, as you probably know, Disney tentpole blockbuster theatrical films can be fairly expensive to make and produce in order to get the quality that consumers expect from us and frankly to get the quality that we expect from us. Rather than simply rolling it into a free offering, we thought we would give again because we can test almost anything when you have your own platform. We thought we would give it a try to establish a new window – a premier access window to try to recapture some of that investment that we've got. All I'll say about our research is that it shows that such an offering under a premier access offering not only gets us revenue from the original transaction from the PVOD but also acts as a fairly large stimulus to sign up for Disney+,” he added.

  • Hotstar brings some cheer to Disney numbers

    Hotstar brings some cheer to Disney numbers

    BENGALURU: Covid2019 has hit most businesses and hard! Events, including all the sporting ones, have been cancelled globally. Ad and other revenues have been impacted for media companies. The Walt Disney Company (Disney) had a steep fall in diluted earnings per share (EPS) in the quarter ended 28 March 2020 (Q2 2020, quarter under review) as compared to the corresponding year ago quarter. The company reported a 63 percent fall in diluted adjusted EPS to $0.60 in Q2 2020 versus $1.61 in the corresponding year ago quarter. Diluted EPS from continuing operations for the quarter under review decreased 93 percent to $0.26 from $3.53 in the prior-year quarter.

    Disney has four segments: Media Networks, parks, experiences and products (Parks), studio entertainment and direct-to-consumer (DTC) and international.

    Disney said in an earnings press release for Q2 2020, “The impact of Covid2019 and measures to prevent its spread are affecting our segments in a number of ways, most significantly at parks, experiences and products where we have closed our theme parks and retail stores, suspended cruise ship sailings and guided tours and experienced supply chain disruptions. In addition, we have delayed, or in some cases, shortened or cancelled theatrical releases and suspended stage play performances at studio entertainment and have seen advertising sales impacts at media networks and direct-to-consumer and International. We have experienced disruptions in the production and availability of content, including the cancellation or deferral of certain sports events and suspension of production of most film and television content. Many of these businesses have been closed consistent with government mandates or guidance. We estimate the Covid2019 impact on operating income at our parks, experiences and products segment was approximately $1 billion primarily due to revenue lost as a result of the closures. In total, we estimate that the Covid2019 impacts on our current quarter income from continuing operations before income taxes across all of our businesses was as much as $1.4 billion, inclusive of the impact at the parks, experiences and products segment. Impacts at our other segments include lower advertising revenue at media networks and direct-to-consumer and international driven by a decrease in viewership in the current quarter reflecting Covid2019’s impact on live sports events and higher bad debt expense and a loss of revenue at studio entertainment due to theater and stage play closures.”

    Total revenues for Q2 2020 increased 21 percent Y-o-Y to $18,009 million from $14,922 million in Q2 2019. Total segment operating income declined 37 percent Y-o-Y in the quarter to $2,416 million from $3,816 million. Disney’s OTT Platform Disney+ includes Indian OTT platform Hotstar. Disney+ Hotstar is a part of Disney’s direct-to consumer and international segment and Disney+ Hotstar helped alleviate a bit of the drop in numbers according to the company. Disney+ average monthly revenue per user at $5.63 was higher than ESPN’s $4.24 and about 47 percent of Hulu SVOD only at $12.06  in Q2 2020, The company estimates that it had 54.5 million Disney+ subscribers as of 4 May 2020.

    “Disney+ launched in a number of European markets during the quarter, which contributed to a total paid subscriber base of $33.5 million at the end of the quarter. And we are very pleased with the success of our rollout in Western Europe and India, including the execution of previously announced deals with some European platforms to distribute the service to all paid subscribers on certain of the widely distributed tiers and in India to convert our pre-existing subscription based Hotstar service to Disney+ Hotstar, revealed senior executive vice president and chief financial officer Christine M McCarth during an investor call.

    Parks, experiences and products

    The largest drop in absolute numbers was from Disney’s Parks segment, followed by a steep increase in operating loss from Disney’s DTC and international segment. Parks' segment operating revenue and segment income declined 10 percent and 58 percent respectively. Disney reported revenue of $5,543 million for Q2 2020 and $6,171 million for Q2 2019 from the Parks segment. Income from the segment was $639 million in Q2 2020 and $1,506 million in Q2 2019.

    “As you know, Disney, like many other companies, has experienced widespread disruption. In mid-March, we closed our domestic parks and hotels indefinitely, suspended our cruise line, halted film and TV productions and shuttered our retail stores. And while these were necessary steps to ensure the safety and well-being of our guests and employees, our businesses have been hugely impacted,” said Disney CEO Bob Chapek.

    “While it's too early to predict when we'll be able to begin resuming all of our operations, we are evaluating a number of different scenarios to ensure a cautious, sensible and deliberate approach to the eventual reopening of our parks. We will take a phased approach with limits on attendance using an advanced reservation and entry system, controlled guest density using social distancing and strict government required health and prevention procedures. These include the use of masks, temperature screenings and other contact tracing and early detection systems," revealed Chapek.

    Disney’s direct-to consumer and international

    Disney’s DTC and International segment operating revenue increased more than threefold (increased 260 percent) y-o-y in Q2 2020 to $4,123 million from $1,145 million in Q 2019. However, loss from the segment more than doubled (increased 111 percent) in Q2 2020 to $812 million from $385 million. Average monthly revenue per user (AMRPU) from Disney+ in Q2 2020 was $5.63. AMRPU for other contributors to Disney’s direct-to consumer and international segment numbers are:

    ESPN ARMPU $4.24 in Q2 2020 versus $5.13 in Q2 2019, a drop of 17 percent; Hulu SVOD only ARMPU $12.06 in Q2 2020, which was 5 percent lower than $12.73 in Q2 2020 and Hulu Live TV + SVOD ARMPU which increased 29 percent in Q2 2020 to $67.75 from $52.58 in Q2 2019.

    The company says that the increase in operating loss from its DTC and International segment was due to costs associated with the launch of Disney+ and the consolidation of Hulu. Results for the quarter under review also reflected a benefit from the inclusion of the TFCF businesses due to income at the international channels, including Star.

    “Results at our DTC businesses had an adverse impact on the year-over-year change in segment operating income of about $500 million which came in a little better than the guidance we provided last quarter. We expect our DTC and International segment to generate about $1.1 billion in operating losses for the third quarter and we expect the continued investment in our DTC services, in particular, Disney+ to drive an adverse impact on the year-over-year change in operating income of our DTC businesses of approximately $420 million, revealed McCarth to investors.

    Media Networks

    Disney’s largest segment is media networks which comprises of 2 sub-segments – cable networks and broadcasting.

    Media networks segment saw revenue increase 28 percent Y-o-Y in Q2 2020 to $7,257 million from $5,683 million in Q2 2019. Operating Income increased 7 percent Y-o-Y to $2,375 million from $2,230 million. Cable networks sub-segment revenue increased 17 percent Y-o-Y to $ 4,445 million from $3,793 million in Q2 2019. Cable networks operating income increased 1 percent to $1,799 million from $1,789 million. Disney says that the increase in cable networks operating income was due to the consolidation of TFCF businesses (primarily the FX and National Geographic networks), partially offset by a decrease at ESPN, and to a lesser extent, the Domestic Disney Channels and Freeform. The decrease at ESPN was due to higher programming and production costs and lower advertising revenue, partially offset by higher affiliate revenue

    Broadcasting revenue increased 49 percent Y-o-Y to $2,812 million from $1,890 million. Broadcasting operating income increased 53 percent in Q2 2020 to $397 million from $259 million. Disney says that the increase in operating income was due to the consolidation of TFCF, largely reflecting program sales, and to a lesser extent, an increase at its legacy operations

    Studio entertainment

    Studio entertainment segment revenue increased 18 percent in Q2 2020 to $2,539 million from $2,137 million in the corresponding year ago quarter. Studio entertainment operating income declined 8 percent in the quarter to $466 million from $506 million. Disney says the decrease in operating income was due to lower results at its legacy operations, partially offset by the consolidation of the TFCF businesses. The decrease at Disney’s legacy operations was due to higher film impairments and decreases in theatrical distribution and stage play results, partially offset by an increase from TV/SVOD distribution

    Confident about the future

    “While the Covid2019 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said Chapek. “Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November.”

  • Disney+ reaches 54.5 mn subscribers; execs pleased with India launch

    Disney+ reaches 54.5 mn subscribers; execs pleased with India launch

    MUMBAI: The Walt Disney Company (Disney) has witnessed a sharp fall in profit as a consequence of the Covid2019 pandemic. While the giant faced widespread disruption like many other organisations, it has one card in store: the newly launched streaming service Disney+. The streaming service is seeing a fast growth in subscribers, which now stands at 54.5 million as of 4 May. It seems shelter-in-place directive has worked in its favour as the service has added 21 million subscribers in less than two months.

    Disney senior executive vice president and chief financial officer Christine M McCarthy said in an earnings call that since they continued launches in several markets between quarter end and 5 May, the subscriber number has also increased reaching 54.5 million. She also added the subscriber mix reflects the same as it did on 8 April when they announced that the service surpassed 50 million subscribers globally.

    "At our direct-to-consumer international segment, operating losses were $427 million higher due to the cost incurred for the online launch of Disney+ around the world and consolidation of Hulu. Disney+ launched in the number of European markets in the world which contributed to a total paid subscriber base of 33.5 million at the end of the quarter and we are very happy with our successful rollout in Western Europe and India where we converted our pre-existing subscription base Hotstar service to Disney+Hotstar,” she added. In India, it already accounts for approximately eight million subscribers as per numbers shared last month.

    The new Disney CEO Bob Chapek, for whom it was the first earnings, also expressed his ecstasy over the successful rollout in Western Europe and India. “We have been thrilled with the performance of Disney+. Since our initial launch in November, we have continued to expand in other markets. In late march as planned, despite Covid2019, we had an incredible launch in Western Europe followed by a highly successful launch in India,” he added. While in India it was scheduled to launch during the billion-dollar sports event IPL to exploit the Hotstar user base, it launched around scheduled time despite the suspension of the tournament.

    “The Hotstar service in India was converted to Disney+ Hotstar, resulting in approximately eight million additional Disney+ paid subscribers. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third party platforms like Apple. In addition, the average monthly revenue per paid subscriber for Disney+ Hotstar is significantly lower than the average monthly revenue per paid subscriber in North America and Europe,” The Walt Disney Company said in a regulatory filing.

    Disney’s overall average monthly revenue per paid subscriber for the second quarter stood at $5.63. 

    "As we will use our branded film and television content on the Disney+ service, we are forgoing certain licensing revenue from the sale of this content to third parties in TV/SVOD markets. In addition, we are increasing programming and production investments to create exclusive content for Disney+," it added in the regulatory filing.

    Chapek added that the streaming service will begin rolling out in Japan in June, followed by Belgium, Luxembourg, Portugal in September and Latin America towards the end of the year. He promised that the vast collection of libraries in regional content available will continue to grow. He added that they will continue to make the planned investment that they always had into programming to drive subscription rate and retention.

  • Disney appoints Bob Chapek as its new CEO; Bob Iger steps down

    Disney appoints Bob Chapek as its new CEO; Bob Iger steps down

    MUMBAI: The Walt Disney Company's Board of Directors has appointed Bob Chapek as chief executive officer with immediate effective. Chapek most recently served as chairman of Disney Parks, Experiences and Products.

    Robert A. Iger assumes the role of executive chairman and will direct the Company’s creative endeavors, while leading the Board and providing the full benefit of his experience, leadership and guidance to ensure a smooth and successful transition through the end of his contract on Dec. 31, 2021.

    “With the successful launch of Disney’s direct-to-consumer businesses and the integration of Twenty-First Century Fox well underway, I believe this is the optimal time to transition to a new CEO,” Iger said. “I have the utmost confidence in Bob and look forward to working closely with him over the next 22 months as he assumes this new role and delves deeper into Disney’s multifaceted global businesses and operations, while I continue to focus on the company’s creative endeavors.”

    Iger added: “Bob will be the seventh CEO in Disney’s nearly 100-year history, and he has proven himself exceptionally qualified to lead the company into its next century. Throughout his career, Bob has led with integrity and conviction, always respecting Disney’s rich legacy while at the same time taking smart, innovative risks for the future. His success over the past 27 years reflects his visionary leadership and the strong business growth and stellar results he has consistently achieved in his roles at Parks, Consumer Products and the Studio. Under Bob’s leadership as CEO, our portfolio of great businesses and our amazing and talented people will continue to serve the company and its shareholders well for years to come.”

    “I am incredibly honoured and humbled to assume the role of CEO of what I truly believe is the greatest company in the world, and to lead our exceptionally talented and dedicated cast members and employees,” Chapek said. “Bob Iger has built Disney into the most admired and successful media and entertainment company, and I have been lucky to enjoy a front-row seat as a member of his leadership team. I share his commitment to creative excellence, technological innovation and international expansion, and I will continue to embrace these same strategic pillars going forward. Everything we have achieved thus far serves as a solid foundation for further creative storytelling, bold innovation and thoughtful risk-taking.”

    Disney Board independent lead director Susan Arnold said: “The Board has been actively engaged in succession planning for the past several years, and after consideration of internal and external candidates, we unanimously elected Bob Chapek as the next CEO of The Walt Disney Company. Mr. Chapek has shown outstanding leadership and a proven ability to deliver strong results across a wide array of businesses, and his tremendous understanding of the breadth and depth of the company and appreciation for the special connection between Disney and its consumers makes him the perfect choice as the next CEO.

    “Chapek will also benefit from the guidance of one of the world’s most esteemed and successful business leaders, Bob Iger,”  Arnold continued. “Over the past 15 years as CEO, Mr. Iger has transformed The Walt Disney Company, building on the company’s history of great storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and Twenty-First Century Fox and increasing the Company’s market capitalization fivefold. Disney has reached unparalleled financial and creative heights thanks to Mr. Iger’s strong leadership and clear strategic vision. We believe Mr. Chapek’s leadership and commitment to this strategy will ensure that the Company continues to create significant value for our shareholders in the years ahead.”

    In Chapek’s new role as CEO, he will directly oversee all of the company’s business segments and corporate functions. Chapek will report to the executive chairman, Iger, and the Board of Directors. He will be appointed to the Board at a later date. A new head of Disney Parks, Experiences and Products will be named at a future time.

    Chapek served as Chairman of Disney Parks, Experiences and Products since the segment’s creation in 2018, and prior to that was Chairman of Walt Disney Parks and Resorts since 2015.

    As Chairman of Disney Parks, Experiences and Products, Chapek oversaw the company’s largest business segment, with operations around the globe and more than 170,000 employees worldwide. The segment includes Disney’s iconic travel and leisure businesses, encompassing six resort destinations in the United States, Europe and Asia, a top-rated cruise line, a popular vacation ownership programme, and an award-winning guided family adventure business. Disney’s global consumer products operations include the world’s leading licensing business across toys, apparel, home goods, digital games and apps, the world’s largest children’s print publisher, Disney store locations around the world, and the shopDisney e-commerce platform.

    During his tenure at the Parks segment, Chapek oversaw the opening of Disney’s first theme park and resort in mainland China, Shanghai Disney Resort; the addition of numerous guest offerings across Disney’s six resort destinations in the US, Europe and Asia, including the creation of the new Star Wars: Galaxy’s Edge lands at Disneyland and Walt Disney World and the addition of Marvel-inspired attractions around the globe; and the expansion of Disney Cruise Line with the announced construction of three new ships.

    From 2011 to 2015, Chapek was President of the former Disney Consumer Products segment, where he drove the technology-led transformation of the company’s consumer products, retail and publishing operations. Prior to that, he served as President of Distribution for The Walt Disney Studios and was responsible for overseeing the Studios’ overall content distribution strategy across multiple platforms including theatrical exhibition, home entertainment, pay TV, digital entertainment and new media. He also served as President of Walt Disney Studios Home Entertainment, where he spearheaded the successful “vault strategy” for the company’s iconic films and transformed the primary format of home entertainment from DVD to Blu-ray.

    Before joining Disney in 1993,  Chapek worked in brand management at H.J. Heinz Company and in advertising at J. Walter Thompson.