Interesting article in the FT on Disney's move to streaming. Points include:
- Disney's TV channels are very profitable ($6bn annual income) but in decline. Disney Plus is growing but is unprofitable.
- The growth of Disney Plus to 70m subscribers has led Disney to invest less in Hulu and not roll it out globally. Indian pay TV business Star is being invested in, though.
- To match its cable profits, ESPN Plus would need to be priced at $40-$45 per month. Its 10m subscribers currently pay an average of $4.54 per month. ESPN traditional cable subscribers saw a decline from 90m in 2016 to 80m in 2020 but rights costs have risen.
https://www.ft.com/content/cf22ac6b-...6-6689c625461d