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The TV streaming apps broke their promises, and now they’re jacking up prices (arstechnica.com)
submitted 3 years ago by to c/technology@lemmy.world
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For a moment, it seemed like the streaming apps were the things that could save us from the hegemony of cable TV—a system where you had to pay for a ton of stuff you didn't want to watch so you could see the handful of things you were actually interested in.

Archived version: https://archive.ph/K4EIh

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[–] 12 points 3 years ago (6 children)

Is Disney+ bleeding money or is that just fancy accounting realizing costs that increase the other parts of Disney's revenue?

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  • [+] 5 points 3 years ago* (last edited 3 years ago) (5 children)
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  • [–] 6 points 3 years ago (2 children)

    Disney is a bit unique with their streaming, though, because their content helps foster interest in their merchandise, parks, theatre movies, etc. The more engagement with their streaming content, the more likely someone is to engage with some other part of their business. Also, if I'm watching Disney+, I'm not watch any other streaming services (at that moment). They want to be a dominant streaming service because it helps them dominate in the parts of their business.

    Netflix, Paramount+, etc. don't really have that, at least not to the same degree. Prime is more similar, because while you're not investing in their own merchandise as much, you might be more like to use Prime shipping or music if you have Prime for video streaming (and vice versa).

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  • [+] 1 point 3 years ago* (last edited 3 years ago) (1 child)
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  • [–] 2 points 3 years ago

    I don't think that producing content by itself is sustainable, but things that aren't quite profitable enough might be enough to be profitable overall with the reach and market share.

    I could totally be wrong, but it feels like they're fairly invested in D+, and I don't think it's because they want everyone to have access. After all, they had a "vault" for many years and only sold movies that were rotated out of the vault at the time.

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  • [–] 2 points 3 years ago

    It wouldn't be a lie, it would just be accounting. And honestly I don't know the accounting practices around such large organizations.

    Basically Disney+ charges Disney studios for Disney IP. Disney studios gets $3B let's say over x amount of time for the deal, and Disney+ spends that amount of money. Meaning Disney+ loses money, while the Disney portfolio as a whole breaks even on the trade. That's not even to mention the value there is bringing people into the Disney ecosystem, making it more likely to visit them parks and buy more merchandise.

    I don't think it's fair to look at Disney+ in a vacuum to compare to other services.

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