Disney changes streaming report strategy

The company will emphasize profitability instead of subscriber counts in financial reports.

Disney shifts focus from subscribers to profits

Disney has announced that it will stop reporting subscriber numbers for its streaming services, choosing to focus instead on profit margins. This change follows a quarter where Disney Plus and Hulu saw an increase of 2.6 million new subscribers, bringing the total to 183 million. CEO Bob Iger and CFO Hugh Johnston stated that membership figures are becoming less significant for assessing business performance. The move mirrors a similar strategy adopted by Netflix, which highlighted profitability over subscriber counts in its recent financial communications. Disney will cease reporting average revenue per user for ESPN Plus starting next quarter, and will follow suit for Disney Plus and Hulu three months later, shifting the emphasis to overall profitability instead.

In moving away from subscriber statistics, Disney is making a broader statement about the evolving nature of the media landscape. This signals a shift where profitability will take precedence over pure subscriber growth, reflecting market realities where revenue comes from diverse sources such as ad-supported plans and bundled offerings. By prioritizing profits, Disney aims to pivot towards a more sustainable financial model amidst increasing competition.

Highlights

The shift could reshape expectations for traditional media reporting.