Disney’s Emmy Victory May Attract More Streaming Subscribers to Disney+ and Hulu
Disney had a successful night at the Emmy Awards, winning nine trophies and strengthening its position in the streaming competition under the leadership of Bob Iger.
Even though FX’s The Bear didn’t win best comedy, it still received several acting awards, while Shogun from the same network won best drama. These wins build on the success from the prior week, where Disney took home 51 awards at the Creative Arts Emmys, including 14 for Shogun.
Disney is banking on the prestige and exposure from the Emmys to boost subscriber numbers on Hulu and Disney+ in the upcoming quarters, aligning with their strategy for sustainable profitability in streaming services.
In the most recent quarter, Disney saw an increase in Disney+ core subscribers to 118.3 million, with Hulu subscribers also rising by 2 percent to 46.7 million. The company reported a profitable streaming quarter ahead of expectations and anticipates further margin improvements in the fourth quarter.
One of the factors contributing to profitability in the quarter was the demand for content on the streaming platform, with shows like Shogun, The Bear, and Abbott Elementary receiving Emmy nominations. Iger emphasized the company’s success in streaming driven by creativity during the earnings call.
Iger reiterated the importance of creativity and creators at Disney while attending the Emmy Awards, praising the collaboration between executives and creatives. He highlighted the significant success of streaming attributed to the company’s Emmy-nominated content and upcoming projects like Inside Out 2.
Disney’s recent price increases for Disney+ and Hulu aim to leverage the popularity of their content for improved profitability. They also introduced short-term discounts to attract more subscribers in the fourth quarter, aligning with their goal of profitability by 2024 Q4 as promised to investors.
Disney’s competition with YouTube for total TV usage market share continues, with both platforms showing strong performance. The company’s focus on offering a unified streaming experience through bundling services and expanding content options is driving engagement on their platform.
Disney’s efforts towards profitability include cracking down on password-sharing and expanding its advertising tier. Despite potential concerns about subscription attrition, Disney’s initiatives, like offering discounts on the ad-tier, are expected to keep consumers engaged.
As the streaming market matures, Disney’s focus on providing quality content and value through discounts and initiatives will play a crucial role in retaining subscribers and driving profitability in the face of challenges in other business areas such as parks attendance.