Streaming media refers to a technology and process that compresses a series of media data, usually video and audio, and sends it in segments throughout the Internet, enabling data package to be sent as a stream.
Compared with downloading media files, the advantage of streaming media is that the continuous audio and video information is compressed and placed on the network server, so that users can watch while downloading, without waiting for the entire file to be wrapped and saved. It is widely used in video-on-demand scenario, video conferencing, distance education, telemedicine and online live broadcast.
According to TMTPOST, streaming media Disney+ was launched in 2019. The pandemic in 2020 provides conditions for natural user growth. However, the North American market is saturated. Although emerging markets is growing, the subscription capacity is insufficient, bogging income growth down. At the same time, Disney+ needs to pay for content and promotion, enhancing the operating cost.
Jingyi, the founder of ShowlessCai, comments that Disney Group has handed over a satisfying financial report. Firstly, main business income has tripled, and the “Total segment operating income” has increased from 600 million to nearly 1.6 billion U.S. dollars. The second is that disposable cash has increased by 2/3, from 900 million to 1.5 billion U.S. dollars. Third, the earnings per share after dilution turned from negative to positive.
What is more, Disney+ payment business appears to grow weak. First of all, data shows that Disney+ revenue has increased by $1 billion (from 11.9 billion to 13 billion), which is only 9%. Second, operating profit fell from $1.55 billion to $950 million. Operating Income suffered a loss of 65 million, of which the “Direct-to-Consumer” suffered a loss of 630 million, twice as the same period last year.
[Three Streaming Media Companies Inside Disney Group]
ShoelessCai comments, if Disney+ does not announce the business strategy or claims the minimum expenditure, it will be questioned by media of the pace. Disney Group has three Streaming Media Division, namely Disney+, ESPN+ and Hulu. Subscribers are growing rapidly, but the profits go unevenly among three business lines. Hulu is relatively stable in terms of both user number and business model.
Disney+ expects to reach 260 million by 2024. “In the long run, we will continue our DTC business (consumer-oriented business),” Chapek said. International expectation and new content should be the critical point for business growth. When it comes to deficit, Disney+ explains that loss is temporary in Indian Disney+ Hotstar, and caused by bundling sales of Disney+, ESPN+ and Hulu in other places, known as $13 per month for three media against $13.99 per month for Netflix.
