Disney Chair & CEO Bob Iger said that ESPN+ now "counts 7.6 million subscribers," according to Annie Palmer of CNBC.com. ESPN+ reported "average monthly revenue per paid subscriber of $4.44, which was a 5% decline from the year ago period." But Disney "blamed the decline on a 'shift in the mix of subscribers' to its bundled subscription package of Disney+, ESPN+ and Hulu, which has a lower average retail price per service compared to the average retail price of each service on standalone basis" (CNBC.com, 2/4).
MAGICAL EARNINGS: Disney said that Disney+ has "grown to 28.6 million subscribers since its Nov. 12 launch." In L.A., Ryan Faughnder notes ahead of the launch, analysts had estimated that Disney+ "would surpass 20 million subscribers" by the end of '19. The app was "backed by a far-reaching marketing campaign and various promotional pricing options." In its quarterly earnings report yesterday, Disney noted Q1 earnings "topped expectations" with a profit of $2.13B. Revenue for Disney as a whole was $20.86B, up 36% from a year ago, "narrowly beating analyst-predicted sales" of $20.76B. The "operating income" from Disney's media networks segment, which includes ABC, ESPN, FX and National Geographic channels, rose 24% to $7.36B, driven by the "addition of businesses from 21st Century Fox." The company's direct-to-consumer segment -- Disney+, Hulu and ESPN+ -- "continued to lose money as Disney spends big to grow its streaming business" (L.A. TIMES, 2/5).
ANSWERING THE BELL: The N.Y. Times' Jim Stewart said the Disney numbers answer any "big questions" about whether the company would be one of the "major players in the streaming space, and we couldn't have taken that for granted a year ago" ("Closing Bell," CNBC, 2/4). CNBC contributor Tom Rogers said with ESPN, the "most surprising thing" is that the cable and broadcasting world have "overcome the ratings decline by pushing up rates and holding advertising revenue pretty stable to growing" ("Fast Money," CNBC, 2/4). CNBC’s David Faber said Disney has "clearly carved out a very important place for itself" ("Squawk on the Street," CNBC, 2/5).
