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Tag: The Walt Disney Company

  • The Reliance-Disney merger’s impact on the media ecosystem: an Elara perspective

    The Reliance-Disney merger’s impact on the media ecosystem: an Elara perspective

    MUMBAI: We believe the merger of Viacom18 and Star India will have a big impact on the entire M&E ecosystem as the combined entity will command a huge market share. The merger will create a large media juggernaut with 108 plus channels (Star India has 70+ TV channels in eight languages whereas Viacom has 38 TV channels in eight languages), two large OTT apps (Jio Cinema and Hotstar) and two film studios (one each of Reliance and Disney India). Large market opportunity (TAM) for the merged company, as India’s M&E market for print, TV and digital is at $18 billion in CY22, poised to post a CAGR of 8.2 per cent  over CY22-25 (Source: EY FICCI).

    Post the merger, the combined entity will command a TV advertisement/TV subscription (excluding distributors/DTH/MSO revenue)/Total TV market share of 40 per cent /44 per cent /42 per cent  (as of FY23) respectively. The merged entity is expected to command a digital OTT market share of ~34 per cent  in CY23, while the TV viewership share in top 10 channels (according to BARC) is ~40 per cent  as of CY23. The consolidation between RIL and Disney on the India TV side could have a negative impact on other linear TV broadcasters, such as Sun TV, Zee, Sony, and others, as they may not be scale up on market share. The merged entity’s focus on maximizing market share through increased investments in content, synergies, and enhanced marketing power poses challenges for individual broadcasters to compete and grow. With a large customer base across various genres, including regional genres and urban GEC, the combined entity aims to dominate key markets, potentially leading to market share loss and challenges for other players, including the possibility of smaller channels shutting down.

    Jio Cinema + Disney Hotstar merger – potential negative for global OTT giants

    The merger of JioCinema and Hotstar poses a challenge for global OTT platforms, as India’s market values bundling and is price sensitive. The combined entity can offer a comprehensive package including web series, movies, sports, originals, and a global catalogue. This bundled premium plan, possibly in collaboration with Jio’s large subscriber base, may hinder the ability of global OTT platforms to raise Average Revenue Per User (ARPU).

    Better prospects of profitability in the medium to long term

    The merger may result in improved profitability for the combined entity as there may be a reduction in employee cost, production cost and marketing costs on the TV side and content costs, particularly on the OTT side, which could contribute to a more sustainable path to profitability over the medium to long term. Currently, both platforms are facing heavy losses due to high content costs, and Jio Cinema relies solely on AVOD without significant paid subscriber revenue. With the combination of Hotstar and JioCinema, the merged entity can enhance its subscription revenue by increasing subscription prices and attracting a larger subscriber base. Reliance may drive the entire business through Jio Platforms, with a significant influx of ad revenues in digital advertising. The digital advertising market, being a winner-takes-all business, heavily relies on scale. They may also have a pay-based mechanism via Jio Cinema/Hotstar at a larger scale which will propel healthy subscription revenue over the medium term

    Monopoly in sports properties may lead to higher ad revenues

    On the sports front, the merged entity is set to become monopolistic, with Disney and Jio collectively controlling approximately ~75-80 per cent  of the Indian sports market across both linear TV and digital platforms. This dominance in sports, primarily cricket, positions them to command a substantial share of the overall ad market, showcasing strong growth in an industry where sports is a key driver of viewership on both linear TV and digital platforms. In CY22, sports adex (TV+Digital) in India stood at  Rs 71billion (according to GroupM) out of which Disney India had a contribution of ~80 per cent . The combined entity will have lucrative sports properties like Indian Premier League (both TV and digital), ICC cricket tournaments (both TV and digital), Wimbledon, Pro Kabaddi League, BCCI domestic cricket etc.

    Telco customer retention and bundling

    Telecom companies have used OTT as a value-add to retain/gain subscribers. And OTT companies piggyback on telecom plays to scale up their subscriber base – TSPs (telecom service providers) have larger access to a wide variety of customers. With the vast content library of Jio and Disney, the merged entity’s content, spanning 1) international movies, 2) web series, 3) sports content and 4) catch-up TV content, could prove advantageous for Jio subscribers and make it a one-stop content hub. There might be initiatives such as a Jio Prime offering, providing subscribers access to content at an affordable or even free price through last mile resource and 5G wireless access. The company will have a big advantage of last mile with Jio having a subscriber base of more than 450 million smartphone users This will hit Bharti Airtel as it has tried to tie up with OTT players in the content ecosystem to offer value-add. Thus, Bharti Airtel may have to invest heavily in own content or shape partnerships with global OTT giants such as Netflix and Amazon or other OTT platforms to generate clout in the content ecosystem.

    Synergy prospects

    – The ad revenue potential from IPL is expected to increase significantly with the merged entity having exclusive rights (TV+Digital) to IPL. This consolidation may result in bundled advertisement revenues, potentially mitigating the higher cost of IPL rights and reducing overall losses; due to IPL rights being split between TV and digital between two different platforms and digital platform offering IPL free, there was a big dent in the IPL revenues on TV, which could see some respite.

    – The merger is anticipated to bring about restructuring in employee costs, reduced production expenses, and lower advertisement costs for TV. These potential cost synergies could contribute to improved margins for the merged entity. On the sports side too, content costs may pare sharply for TV, digital over the medium to long term, given that fewer platforms may bid aggressively for expensive properties.

    – In digital, content cost inflation (content cost for web series 3-5x higher than for TV non-fiction shows, per episode) has been sharper due to heavy fragmentation in the OTT market and entry of global giants with deep pockets. With the merger, content cost in digital may see much lower growth, which may improve the unit economics for the OTT business, potentially resulting in lower EBITDA losses for Jio Cinema and Hotstar.

    – Considering the critical role of technological advancements in the success of OTT platforms, the integration of Disney’s technological expertise is expected to enhance the user experience on Jio Cinema. This improvement may subsequently drive higher subscriber numbers and revenue growth.

    Risks

    – Post CCI approval, NCLT (National Company Law Tribunal) approval may take another eight to 12 months

    – A below par customer experience on the video apps despite a wide variety of content may not augur well in subscribers paying for the same; global OTT giants like Netflix have a very superior experience to command a premium ARPU

    – Continuance of hefty losses of the merged entity over the near to medium term due to high costs sports properties (IPL, ICC tournaments & BCCI bilateral rights) could negatively impact valuation prospects for the merged entity

    Shareholding pattern of the merged entity

    After the merger, the ownership structure of the combined entity will be as follows: Reliance will hold 53 per cent  stake through cash infusion, after acquiring Paramount’s balance stake and factoring TV18 and Viacom 18 stake in JV, which are RIL’s subsidiaries;  Disney will hold 36.8 per cent , whereas the Bodhi Tree (stake through Viacom18) /TV18 (ex of Reliance stake) will hold balance 6.2 per cent /3.8 per cent  stake respectively.

    Valuation

    The joint entity, including cash infusion, is valued at  RS 704bn. This valuation comprises  Rs 115 billion in cash,  Rs 330 billion for Viacom18 (including Jio Cinema) and the remaining  Rs 260 billion (~USD 3.2 billion) is the combined valuation of Star India and Hotstar. This valuation of Star India and Hotstar is much lower compared to pre-covid valuation of $12-13 billion which may be due to 1) loss of IPL digital rights leading to ~50 per cent  ad revenue decline and 40 per cent  subscription revenue decline for Hotstar, 2) TV ad revenue remaining flat over FY19-23 and 3) sports content which may continue to incur hefty losses in linear TV due to slower revenue growth. From a valuation standpoint, the impact on TV18 (which owns 13 per cent  in Viacom18) is minimal to negative, as the combined entity is expected to generate substantial losses in the near term due to sports content. Additionally, TV18’s stake in the merged entity is valued at  Rs 42 billion, implying a hefty premium for its news business at  Rs 40 billion (considering TV18’s overall current market cap of  Rs 82 billion).

  • Disney Cruise Line creating ultimate holiday destination onboard the Disney Adventure

    Disney Cruise Line creating ultimate holiday destination onboard the Disney Adventure

    Mumbai: Sailing from Singapore in 2025, the one-of-a-kind Disney Adventure will offer families throughout the region the ultimate holiday at sea. The first Disney Cruise Line ship to homeport in Asia will be a destination itself, sailing on three- and four-night voyages designed with magical days at sea and filled with immersive storytelling and captivating entertainment like only Disney can do.

    “We’re bringing the magic of Disney Cruise Line to Asia for the first time ever, and we want to give our guests the cruise relaxation and Disney fun they can only experience aboard one of our ships,” said Disney Cruise Line SVP and general manager Sharon Siskie. “When they set sail on the Disney Adventure, guests will find incredible, immersive areas that bring the worlds of Disney, Pixar and Marvel to life in ways like never before – and these uniquely Disney experiences will inspire families to reconnect, recharge and make unforgettable memories that they’ll cherish forever.”

    New areas to discover aboard the Disney Adventure

    The Disney Adventure will be both a journey and a destination, a voyage of limitless possibilities that brings to vibrant life the core pillars of Disney storytelling. Through the magic of imagination, discovery, fantasy and — of course — adventure, guests will embark on voyages to seven uniquely themed areas, each teeming with dozens of incredible characters and unforgettable experiences, without ever leaving the ship.

    The power of imagination, which opens doors to new adventures and emboldens dreamers to create magic of their own, will captivate guests from the moment they enter Disney Imagination Garden.

    ● Disney Imagination Garden will be the emotional heart of the Disney Adventure, an enchanted valley, charming garden and open-air performance venue all in one. Inspired by 100 years of heroic and heartwarming Disney adventures — from Moana on the high seas to Mowgli in the jungle — this imaginative gathering space will be guests’ gateway to an unforgettable journey all their own.

    The spirit of discovery will inspire guests to chase the horizon, to see how far they can go, and to encounter surprising worlds beyond their own in the dynamic realms of Disney Discovery Reef, San Fransokyo Street and Wayfinder Bay.

    ● At Disney Discovery Reef, families will shop and dine in an ethereal and ever-changing retreat evoking favorite aquatic characters and nautical stories from Walt Disney Animation Studios and Pixar Animation Studios, including “The Little Mermaid,” “Lilo & Stitch,” “Finding Nemo” and “Luca.”

    ● Inspired by the eclectic world of Walt Disney Animation Studios’ “Big Hero 6,” San Fransokyo Street will be a family entertainment area pulsing with the energy and atmosphere of a vibrant street market and boasting an assortment of interactive games and activities, shops, cinemas and more.

    ● At Wayfinder Bay, guests will be called by “the line where the sky meets the sea” to an open-air oasis under the sun, where relaxation and exclusive entertainment await. The sophisticated yet casual poolside retreat will reflect the Pacific Islands-inspired artistry of Disney Animation’s “Moana,” offering some of the most stunning views of the sea and sky aboard the Disney Adventure.

    The magic of fantasy draws on hopes, dreams and wishes to create whimsical new worlds from many of Disney’s most beloved and timeless stories, with fairytales made real in the enchanting and expansive Town Square.

    ● Town Square will be a celebration of Disney royals — a magical land dedicated to those who wish upon a star hoping their dreams will come true. This fantastical forest filled with shops, lounges, cafes, restaurants and entertainment venues will exude the enchanting feeling of summer in full bloom with nods to “Tangled,” “Cinderella,” “Frozen,” “Snow White and the Seven Dwarfs,” “The Princess and the Frog,” and more.

    The heart of every Disney adventure is the irresistible thrill and joyful delight of boldly embarking on new and exciting experiences, a feeling guests will dare to discover within Marvel Landing and Toy Story Place.

    ● At Marvel Landing, heroes will unite in a destination for fans of all ages. As a celebration of Marvel’s larger-than-life personalities, this area will offer Avengers-level adventure, with all-new attractions and experiences that showcase imaginative representations of guests’ favorite Super Heroes.

    ● Toy Story Place will inspire guests to explore, create, connect and have fun in a whimsical, interactive play land with themed food venues and water play areas, where the world of Pixar’s “Toy Story” movies and shorts springs to life in surprising and inventive ways.

    Where magic meets the sea

    The Disney Adventure will offer guests a Disney Cruise Line holiday on a grand scale, including the hallmarks of every Disney cruise – fun and relaxation for everyone onboard, incredible dining, world-class entertainment and exceptional guest service.

    Every sailing will include an endless array of indoor and outdoor fun, with exciting attractions, interactive play areas, fun in the sun and special entertainment, plus so much more for families to enjoy together. Young cruisers will have the time of their lives with dedicated spaces and clubs for kids, tweens and teens, while adults relax and unwind with premium dining, lounge and spa experiences.

    “Consumers in this region have shown such strong affinity for Disney, and we are thrilled to bring an unparalleled Disney Cruise Line vacation to their backyard,” said Sarah Fox, vice president and regional general manager, Asia, Disney Cruise Line. “By infusing Disney’s signature service with handpicked experiences unique to Asia, guests can look forward to the magic at sea through personalized touches, a selection of global cuisines, and abundant retail offerings carrying a distinct local flavor.”

    A highlight of every Disney cruise holiday is the world-class entertainment that brings the ship to life. Throughout the Disney Adventure, guests will enjoy unforgettable character encounters, dazzling stage shows brimming with Disney songs and characters, signature events, first-run films, karaoke and game shows.

    Guests aboard the Disney Adventure will also enjoy the exceptional dining and impeccable service that Disney Cruise Line is known for. Guests will indulge in a collection of imaginative restaurants where dinner is more than a meal — it’s a chance to feast on favorite Disney stories through immersive theming and distinctly Disney entertainment. Guests will be accompanied by the same dedicated service team throughout the voyage, adding a level of familiarity and attention to their dining experience.

    When it’s time to rest, guests will retreat to well-appointed staterooms complete with special Disney touches and family-friendly conveniences, such as Disney Cruise Line’s signature split-bath concept, which allows two people to get ready at once. The Disney Adventure will also feature extensive concierge accommodations, providing ultimate luxury and a heightened level of personalized service and convenience, including access to exclusive areas and amenities such as a private indoor lounge, an expansive sundeck with a pool and whirlpools, high-end shopping venues, and dedicated spa and fitness facilities.

    A new adventure on the horizon

    Beginning in 2025, the Disney Adventure will sail three- and four-night cruises from the Marina Bay Cruise Centre for at least five years as part of a collaboration between Disney Cruise Line and Singapore Tourism Board. Singapore’s strategic location, world-class air connectivity and port infrastructure make it a thriving cruise hub in Southeast Asia, a diverse region that is home to over 40 UNESCO World Heritage Sites.

    Disney Cruise Line estimates the passenger capacity of the 208,000-gross-ton Disney Adventure to be approximately 6,700 with around 2,500 crew members.

    More details about the maiden voyage and onboard experiences will be announced at a later date.

    For more information about the Disney Adventure, guests can visit

    https://disneycruise.in/adventure

    https://bit.ly/DisneyAdventureTeaser

  • Disney emerges profit during first financial report in streaming business

    Disney emerges profit during first financial report in streaming business

    Mumbai: Disney’s revenue for the quarter ending March 30 climbed to $22.1 billion compared to $21.8 billion in the corresponding period last year. Earnings per share for the quarter surged to $1.21 from 93 cents, exceeding analysts’ expectations of $1.02 per share on revenue of $20.53 billion.

    The company celebrated its first-ever profit in the streaming business, with expectations set for the combined streaming businesses to be profitable by the fiscal fourth quarter, in line with guidance established in 2019.

    The number of core Disney+ subscribers reached 117.6 million, while Hulu reported 50.2 million subscribers. However, paid subscribers for Disney+ Hotstar dropped to 36 million by 30 March 2024, from 38.3 million on 30 December 2023, with average monthly revenue per paid subscriber decreasing to $0.70 from $1.28 due to lower advertising revenue.

    According to Q2 FY24 report, a 17 per cent decrease in operating loss at Star India was noted due to reduced programming and production costs attributed to the non-renewal of Board of Control for Cricket in India rights. However, this was partially offset by increased costs for Indian Premier League matches due to more matches aired compared to the previous year.

    Disney+ Hotstar has been experiencing a decline in subscribers, losing 12.5 million paid subscribers in the third quarter ending on 1 July 2023, and an additional 2.8 million in November 2023.

    The sports unit, ESPN, saw a two per cent revenue increase to $4.3 billion, while the experiences division, which includes theme parks and consumer products, reported a 10 per cent increase to $8.4 billion. However, there was a 17 per cent decline in sports revenue from Star Sports, reaching $105 million in Q2FY24 versus $127 million in Q2FY23.

    The Walt Disney Company CEO Robert A.Iger expressed satisfaction with the strong performance in Q2, highlighting a 30 per cent increase in adjusted EPS(1) compared to the prior year. He said the positive outcomes of the growth initiatives set in motion the previous year, including highly anticipated theatrical releases, successful television shows, ESPN’s continued success, and strategic investments driving growth in the Experiences business.

  • Gaurav Kumar Dewani joins NDTV as revenue head – content

    Gaurav Kumar Dewani joins NDTV as revenue head – content

    Mumbai: Gaurav Kumar Dewani has joined NDTV as revenue head – content. He was previously with The Times Network as senior vice president & national head – branded content.

    With an extensive experience of almost two decades spanning across Business Development, Strategy, Marketing and Operations, his core expertise is spearheading Sales & driving revenues across diverse sectors like Television, Print, Music, Live Entertainment & Digital media.  

    He had been associated with global industry leaders like The Walt Disney Company, Hindustan Times & Network 18. He is a management graduate from JIMS, Rohini & holds an executive MBA from IIM Calcutta.

    In his new role with NDTV, he will be based out of Delhi. 

  • The Walt Disney Company appoints Amrita Choudhary as head of media and partnerships

    The Walt Disney Company appoints Amrita Choudhary as head of media and partnerships

    Mumbai: Wavemaker India’s former managing partner Amrita Choudhary has been onboarded as head of media and partnerships at The Walt Disney Company.

    With a career that began at DNA and included positions at Star India, Maxus, and Sony Entertainment, Choudhary brings a wealth of experience. Her tenure at Wavemaker involved crafting media strategies for brands, leveraging comprehensive business and market analysis, understanding consumer behavior, and ensuring alignment between brand building and demand creation.

  • Disney+ Hotstar adds 8.3 mn subscribers in the quarter ended 2 July to reach 58.4 mn

    Disney+ Hotstar adds 8.3 mn subscribers in the quarter ended 2 July to reach 58.4 mn

    Mumbai: The Walt Disney Company on Wednesday revealed that Disney+ Hotstar added 8.3 million members during the quarter ended 2 July to reach 58.4 million paid subscribers. The company announced its financial results for the third quarter fiscal 2022.  

    Overall Disney+ subscribers have reached 152.1 million as compared to 138 million in the previous quarter, an addition of 14.4 million members. The company’s average revenue per paid subscriber for Disney+ Hotstar increased from $0.78 to $1.20 due to higher per-subscriber advertising revenue.

    The company’s performance defied market expectations with revenue for the quarter up by 26 per cent at $21.504 billion. For the nine-month period the growth was 28 per cent to $62.5 billion. Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.77 from $0.50 in the prior-year quarter. Net income from continuing operations rose by 53 per cent for the quarter and by 63 per cent for the nine-month period.

    Disney Media & Entertainment Distribution revenues were up by 11 per cent for the quarter to $ 14.1 billion. For the nine-month period it rose by 12 per cent to $42.3 billion. International Channels which come under this division saw revenues for the quarter increase by 7 per cent to $1.5 billion and operating income was comparable to the prior-year quarter at $0.2 billion reflecting lower operating income from channels that operated for the entire current and prior-year quarters (ongoing channels), offset by a benefit from channel closures.

    Lower results from ongoing channels were primarily due to an increase in sports programming costs, partially offset by ad revenue growth reflecting higher average viewership. The increases in sports programming costs and ad revenue were due to the airing of 64 Indian Premier League (IPL) cricket matches in the current quarter compared to 29 matches in the prior-year quarter. IPL cricket matches typically occur in the company’s second and third fiscal quarters. The increase in the number of matches in the current quarter was due to a shift in the timing of matches in the prior year from the third quarter to the fourth quarter as a result of COVID-19 and the IPL adding matches to the current season.

    In the direct-to-consumer segment programming and production costs and ad revenue growth was also due to the additional IPL matches in the current quarter. As had been reported earlier Disney-Star India retained the broadcast rights for the T20 league for five more years while it let go off digital rights due to cost considerations. Those rights went to Viacom18. Linear Networks revenues for the quarter increased by three per cent to $7.2 billion, and operating income increased by 13 per cent to $2.5 billion. Direct-to-Consumer revenues for the quarter increased 19 per cent to $5.1 billion and operating loss increased $0.8 billion to $1.1 billion. The increase in operating loss was due to a higher loss at Disney+, lower operating income at Hulu and, to a lesser extent, a higher loss at ESPN+.

    Disney CEO Bob Chapek said, “We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings. We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.”

    Content Sales/Licensing and Other revenues for the quarter increased by 26 per cent to $2.1 billion and segment operating results decreased from income of $132 million to a loss of $27 million. The decrease in operating results was due to an unfavourable foreign exchange impact and lower TV/SVOD and home entertainment distribution results. These decreases were partially offset by an increase at the stage play business, as productions were generally shut down in the prior-year quarter due to COVID-19, and higher theatrical distribution results.

    The decrease in TV/SVOD distribution results was due to a decrease in sales of theatrical film content primarily due to a shift from licensing content to third parties to distribution on the DTC services. The decrease in home entertainment results was due to lower unit sales of catalogue titles.

    The increase in theatrical distribution results was due to the strong performance of Doctor Strange In the Multiverse of Madness in the current quarter compared to Cruella in the prior-year quarter. Current quarter releases also included Lightyear and The Bob’s Burgers Movie.

    Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter. Segment operating income increased $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter. Higher operating results for the quarter reflected increases at the US parks and experiences and, to a lesser extent, at international parks and resorts.

    Covid-19 Pandemic: The company said that measures to prevent its spread have impacted its segments in a number of ways, most significantly at the Disney Parks, Experiences and Products segment where its theme parks and resorts were closed and cruise ship sailings and guided tours were suspended. These operations resumed at various points since May 2020, initially at reduced operating capacities as a result

    of Covid-19 restrictions. In fiscal 2020 and 2021, it delayed, or in some cases, shortened or canceled, theatrical releases. In addition, it experienced significant disruptions in the production and availability of content, including the delay of key live sports programming during fiscal 2020 and fiscal 2021. In fiscal 2022, its US parks and resorts are operating without significant Covid-19- related capacity restrictions, such as those that were generally in place in the prior year.

    In addition, its cruise ships have generally been operating without Covid-19-related capacity restrictions since April 2022. Certain international parks and resorts continue to be impacted by Covid-19-related closures and capacity and travel restrictions. At the Disney Media and Entertainment Distribution segment, film and television productions have generally resumed, although the company has seen disruptions of production activities depending on local circumstances. Thus far, it has generally been able to release its films theatrically in fiscal 2022, although certain markets continue to impose restrictions on theater openings and capacity.

    The company added that it has incurred, and will continue to incur, costs to address government regulations and the safety of employees, guests and talent, of which certain costs are capitalised and will be amortised over future periods.

  • Disney appoints Kavita Vazirani as head of research, insights and analytics for its M&E division

    Disney appoints Kavita Vazirani as head of research, insights and analytics for its M&E division

    Mumbai: The Walt Disney Company has appointed Kavita Vazirani as executive vice president and head of research, insights & analytics at Disney Media and Entertainment Division.

    With 28 years of experience, Vazirani is a marketing and advertising executive who specialises in end-to-end marketing & media strategies that align with consumer behaviour to drive business objectives around subscriber acquisition, retention and loyalty.

    She was previously associated with NBCUniversal Media as EVP insights, measurement & advertising sales with the charge of transforming its approach to measuring effectiveness of ad spend across the NBCU portfolio.

    She has spent two decades at Comcast Cable where she played a role in directing the portfolio strategy development and buying of paid/owned media in excess of $1.5 billion. She is based out of New York. 

  • Disney+ Hotstar aims to produce 100 local original titles in India

    Disney+ Hotstar aims to produce 100 local original titles in India

    Mumbai: The Walt Disney Company has revealed that there are 500 local original titles in various stages of development and production for Disney+ and gave a breakdown of the number of titles slated for each region during its second-quarter earnings call for fiscal 2022. According to The Walt Disney Company senior EVP and chief financial officer Christine McCarthy, there are 140 local content titles slated for the Asia Pacific region including Southeast Asia, 150 titles for Europe, the Middle East, and Africa (EMEA), 100 titles in production in India and 200 titles in Latin America.

    “We are enthusiastic about our growth potential in international markets,” said The Walt Disney Company chief executive officer Bob Chapek. “We currently have over 500 local original titles in various stages of development and production. 180 of those titles are slated to premiere this fiscal year, increasing to over 300 international originals per year in a steady state. We believe these premium local originals, along with branded content with broad international appeal, will attract new subscribers and drive engagement.”

    The Walt Disney Company has said that it plans to spend $32 billion on content in 2022 out of which one-third will be in sports, and the balance will be dedicated to investments into general entertainment content including linear, theatrical, and direct-to-consumer (DTC) platforms.

    The company recently announced plans to introduce an ad-supported subscription offering for Disney+ in the US by the end of the calendar year that will roll out internationally in 2023. The company saw a stellar quarter for its streaming services with more than 205 million subscriptions overall (Disney+, ESPN+, Hulu) adding 9.2 million subscriptions in the quarter. The majority of the new subscriptions were driven by Disney+ which added 7.9 million subscribers which came to a total of 138 million global paid subscribers. A little over half of the net adds were from Disney+ Hotstar which benefited from the start of the new IPL season towards the end of the second quarter, noted McCarthy.

    Excluding Disney+ Hotstar, internationally the service added over two million paid subscribers with Latin America being the strongest contributor.

    As per the earnings report, Disney+ has 44.4 million subscribers in the US and Canada and 43.2 million international subscribers excluding Disney+ Hotstar. Disney+ Hotstar has 50.1 million subscribers, a massive jump of 42 per cent over the corresponding quarter in the previous year. The average revenue per paid subscriber in the US and Canada is $6.32 while for Disney+ Hotstar it is at $0.76.

    The average monthly revenue per paid subscriber for Disney+ Hotstar increased from $0.49 to $0.76 due to launches in new territories with higher average prices and higher per-subscriber advertising revenue, partially offset by a higher mix of wholesale subscribers.

    The company’s direct-to-consumer revenues for the quarter increased 23 per cent to $4.9 billion and operating loss increased to $0.9 billion. The increase in operating loss was due to higher losses at Disney+ and ESPN+ and lower operating income at Hulu.

    The lower results at Disney+ were due to higher programming, production, marketing and technology costs offset by increase in subscription revenue. The higher subscription revenue was due to subscriber growth and increases in retail pricing. The increases in costs and subscribers reflected growth in existing markets and expansion into new markets, to a lesser extent.

    “Direct-to-consumer programming and production costs in Q3 (third quarter) are expected to increase by more than $900 million year-over-year, reflecting higher original content expense at Disney+ and Hulu increased sports rights costs and higher programming fees at Hulu Live,” Christine McCarthy stated.  “At Disney+, while we still expect higher net adds in the second half of the year versus the first half, it’s worth mentioning that we did have a stronger-than-expected first half of the year.”

  • Disney+ Hotstar’s Indian entertainment content is underappreciated: Disney CFO

    Disney+ Hotstar’s Indian entertainment content is underappreciated: Disney CFO

    Mumbai: The Walt Disney Company SVP and CFO Christine McCarthy said that Disney+ Hotstar owes a large part of its success to live cricket, but the Indian streaming giant’s entertainment content is underappreciated. The Disney executive was addressing the Morgan Stanley Technology, Media and Telecom Conference 2022 on Tuesday.

    “India is a big market. There’s a lot of focus on the IPL. Disney+ Hotstar users enjoy the current IPL sports program on the platform. But they also enjoy a lot of other sports programming, whether it’s other cricket rights, other international sports. Something that’s very underappreciated is the amount of general entertainment and the quality of that entertainment and viewership in the Indian market,” McCarthy told Morgan Stanley analyst Ben Swinburne.

    She further added, “In 2021, of the 15 top viewed series on direct-to-consumer, nine of those came from Disney+ Hotstar. So, there’s content that people are going to view just like here in the United States, a lot of people view sports, sports is something that’s a very popular type of content to consume, but they also consume other types of content. And, so, when you think about the number of hours and the quality of the content that is being produced in the Disney+ Hotstar originals, that’s something we’re very proud of. And we think that that will continue to make that business one that consumers will engage in.”

    When asked if Disney+ would be able to achieve its 2024 guidance, McCarthy stated, “I know some people were skeptical on our last earnings call when we said that we could still make our guidance and this actually related to something in India regarding the IPL. But we feel good about where we are with that 230 million to 260 million Disney+ subscribers by 2024.”

    The Disney executive also said that the company is not only looking at subscriber growth but also profitability. “And we like those two because we think it injects the right kind of tension for really managing the business. We’re driving towards that, and we feel really good because of the content that we have; the brands we have, the intellectual property we have to work with. And once again, we’re learning more.”

  • Disney Star elevates Harry Griffith to head rights acquisition & syndication-sports

    Disney Star elevates Harry Griffith to head rights acquisition & syndication-sports

    Mumbai: The Walt Disney Company has expanded Harry Griffith’s role to head rights acquisition and syndication sports for Disney Star. He will report to Disney Star head sports Sanjog Gupta. 

    Harry will be taking over additional responsibilities of rights acquisition and key licensor relationships in addition to his current responsibility of heading global syndication and sales for sports. Harry has been a part of the sports team since July 2015. He started his journey with the sales team and proceeded to take on global syndication of sports rights. Over the last year, Harry has managed tough negotiations in the Middle East and facilitated rights deal renewals across the world.

    Griffith has over 15 years of experience working in the media, sports, and entertainment industries. His expertise lies in TV/digital media rights, ad sales solutions, rights acquisition, syndication, sponsorship, digital, monetisation and business development for the world’s leading rights owners, agencies and broadcasters in multiple territories.

    Prior to joining Star TV Network in 2015, he was associated with Eurosport as international sales and partnerships manager. He has also been with IMG Media for eight years before he quit as commercial sales and partnerships manager.