Why Disney Is Thriving on Streaming
As 2024 ends, The Walt Disney Company is riding a newfound wave of streaming success.
Not coincidentally, Disney’s stock has stabilized in the $110s range after hovering in the 80s for most of the past two years.
Photo: measureupgroup.com
Wall Street cares about streaming profits a disproportionately large amount.
So, while you and I could care less, it matters to Disney’s bottom line…and whether Disney expansion projects keep their budgets.
Walt Disney Company
I’m being direct here because Disney has a long history of expansion projects falling short of expectations.
In virtually every instance, the primary cause for the disappointment is a budget shortfall at the wrong time.
Disney
That’s why I’m tracking Disney’s financials the way kids are studiously following the traffic patterns for Santa’s sleigh.
And I’m happy to report that all systems are go right now. Here’s why Disney is thriving on streaming.
More People Watch Disney
Nielsen
I’ve previously discussed The Gauge. It’s Nielsen’s attempt to modernize its ratings methodology.
In normal person terms, The Gauge finds out what people watch the most.
Nielsen
For example, 10.8 percent of all media consumption occurs via YouTube channels. And I’m probably responsible for half of that.
Like many of you, I often have YouTube on in the background while I work, play, and relax.
YouTube
As a single service, YouTube is the most popular form of media consumption…but there’s an untold second half of the story.
Many media companies like Disney offer more than one form of media consumption. YouTube offers a single location.
CHINA – 2023/08/31: In this photo illustration, the Disney+ logo is displayed in the Apple App Store on an iPhone. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images)
So, Disney’s totals require aggregation. We’ve got Disney+ (1.9 percent) and Hulu (2.7 percent) as its primary streaming hubs.
Those are, respectively, the third and fourth most-watched streaming services, behind Amazon and Netflix.
Photo: English Jargon
However, Disney also maintains its dominance on network television primarily due to live sports and its ABC lineup of hits.
Once we add together all of Disney’s content, something The Gauge does each month, it’s ahead of everything.
Image: The Wall Street Journal
Disney content garners 11.1 percent of ALL media viewing.
In simplest terms, one out of every nine viewer hours go to Disney content.
Photo: Disney
So, when I say that more people watch Disney than anything else, that’s what I mean.
Disney content is somehow even more popular than YouTube.
Disney’s Steady Flow of Content
Photo: Bluey.tv
Disney has created a nuanced, diversified content portfolio that engages viewers of every age and fandom.
Of course, sometimes, it helps to be lucky. Nobody at Disney could have possibly anticipated the staggering popularity of the Bluey phenomenon.
Photo: Ludo Studios
Similarly, the sudden growth of women’s college basketball and the WNBA is the Disney equivalent of you winning the lottery for $5,000.
The money isn’t life-changing per se, but you’ll have oh so much fun spending it.
Photo: People
According to Nielsen, WNBA viewership grew 201 percent this year alone!
That helps because Disney is paying more for the NBA at a time when its ratings are in decline.
ESPN
However, the resurgence of college football and the NFL has more than offset those concerns.
Right now, football is carrying Disney ratings and with it, those sweet, sweet advertising dollars.
NBA
Disney has so much college football that it sold some Warner Bros. Discover and then later traded more in a clean swap for Inside the NBA.
That’s a sure sign that the company is very comfortable with both its financials and the level of high-quality content it can air/stream.
Photo: Recorder.com
The sports schedule plays right into Disney’s hand, as the time from late August through the end of January is rife with football.
Then, we have the build-up to March Madness, followed by the NBA and NHL playoffs, which typically last through mid-June.
Photo: D23
So, there’s really only a two-month period where Disney is lacking in live sports that engage viewers.
Not coincidentally, Disney has dialed back its baseball broadcasts because they’re really not needed.
Photo: Disney Clip Art
As a diehard baseball superfan, that hurts to admit, but it’s true.
Disney offers a steady stream of live sports content that secures eyeballs (and advertising revenue) throughout the year. It’s masterful scheduling.
Let’s Talk Ratings
Wall Street Journal
This may be the last week of Disney ratings until 2025. Nielsen often takes the holidays off, a decision I respect.
Still, the week proved eventful for Disney content. While nothing Disney is on Originals, the Movies chart tells quite the story.
Photo: IMDB
Deadpool & Wolverine won the week with 586 million. As expected, it died quite a bit after a big opening week.
Moana partially made up for it as hype for the sequel led to more rewatches of the original. It gained 396 million viewer minutes.
Photo: Disney
That’s one of Moana’s best performances in ages…and it was already one of the most watched movies on streaming!
Finally, we have Alien: Romulus, the summer blockbuster which debuted on Hulu.
Photo: 20th Century Fox
For whatever reason, few Hulu movies ever chart. So, its 325 million is actually quite good.
Still, the money machine at Hulu (and Disney+) is rewatchable television.
Photo: 20th Century Fox
Here are the shows that charted on Acquired this week:
- Family Guy – 1.086 billion viewer minutes
- Grey’s Anatomy — 992 million viewer minutes
- Bluey – 949 million viewer minutes
- Bob’s Burgers – 743 million viewer minutes
- Lost – 717 million viewer minutes
- Gossip Girl – 680 million viewer minutes
- Law & Order: Special Victims Unit – 602 million viewer minutes
- American Dad – 565 million viewer minutes
FOX
Folks, that’s eight (!) titles in the top ten on Acquired, which tells the whole story here.
Hulu has become comfort food for streaming viewers. People pull up the app and then leave their favorite shows streaming for hours.
Many of them are on the ad tier, which means these big numbers lead to massive revenue for Disney.
That’s why streaming has become profitable. Hulu has been the key all along.
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Feature Photo: Disney+
