Boosted by Disney+ Advertising, Disney Delivers Strong Earnings in Europe, the Middle East, and Africa
When Bob Iger returned to the helm of The Walt Disney Company in November 2022, his top priority was to revitalize Disney’s streaming unit.
Since the launch of Disney+ in 2019, the company had spent a fortune to attract new customers, while the unit was losing billions.
Photo: Getty Images/Ringer illustration
Surveying the situation, Iger knew something needed to change.
Iger’s Streaming Turnaround
Over the past two and a half years, Disney has undergone a radical shift in its streaming strategy, prioritizing profitability over subscriber growth. To that end, we have seen a purge of content across Disney’s platforms, the integration of ESPN+ and Hulu into Disney+, as well as an increase in bundle options.
Additionally, Disney has begun to push users towards the ad-supported version of Disney+.
Like the cable networks decades ago, streamers have learned that profitability comes from advertising, not subscription fees. It should be no surprise, then, that Disney’s push to profitability has correlated with a rise in ad-supported subscribers.
The strategy has paid off handsomely.
Disney’s EMEA Earnings
Earlier this week, Disney reported that its revenue in Europe, the Middle East, and Africa (EMEA) rose 4.4% last year, boosted by the launch of ad-supported streaming services.
Photo: Disney
In total, Disney generated $5.5 billion in EMEA revenue last year, with profits increasing by 3%.
“The increase in turnover and profit for the period is mainly driven by the strong performance of Disney+ in the year, supported by the introduction of the new subscription tier model in November 2023,” the earnings statement said.
Photo: Disney
As Disney continues to navigate the new world of streaming, they have seemingly found a viable path forward. After years in the wilderness, the company has reached the profitability promised land.
