Understood, but the shows cost money to make. Sunk costs. So they merely write them off as a loss?
I understand that's at least one way to do "business", but still seems a bit odd. Not much confidence in their own product's appeal?
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Media Companies Are Ready to Sell. Does Anyone Want to Buy?
- Thread starter davideduardo
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I understand that's at least one way to do "business", but still seems a bit odd. Not much confidence in their own product's appeal?
You freeze costs, try to lease the titles elsewhere and monetize. Beats paying those fees when the title isn’t producing revenue.
Disney hikes prices on streaming plans for second time this year
Disney hikes prices on streaming plans for second time this year
Disney's previously announced price increases for some of its streaming services took effect Thursday. The company continues to grapple with direct-to-consumer profitability challenges and falling subscriber numbers.
$2.00 isn't a big deal.
That's easy for you to say. For a family trying to make do on a low or "working class" income, where that $14/month or $140/year might take away a meal a month for the family, that extra two bucks could be the make/break decision on whether to continue subscribing. There are enough no-cost, ad-supported offerings that could replace Disney+ in those kinds of households, and even the ad-supported version at $8/mo might look more palatable. The Disciples Of Walt need to decide how many times around the bowl they want to swim as they raise the prices and then watch more subs take the off ramp.
It might not seem like a big deal but to a retiree on a fixed income it might be. Plus other streamers are also or have raised prices this year. If you subscribe to 4 or 5 streaming services you could be paying an extra $10 or so a month. Plus Amazon is doing a hidden price increase, they are adding advertisements to Prime and you have to pay extra to upgrade to the existing commercial free service.
These are all for-profit businesses trying to recover and profit from the high cost of creating streaming content. If you're on a fixed income and can't afford the extra $2.00 a month, then I suggest sticking with over-the-air free local TV, or other ad-supported streamed content.
With all the competition, selling ads isn't as easy as it used to be, requiring a staff of salespeople which, you guessed it, costs money. Disney, Paramount, Hulu, Netflix, etc. are replacing ad-supported content with premium subscription content because it's expensive to make and the hope is, will eventually be more profitable than the old model.
Millennials and Gen-Z are used to a subscription model. That's what all these streaming services are counting on.
Likely only subs over 50, but they're banking on every senior sub that can't afford the extra $2-5 per month, three more younger people used to subscribing to entertainment, will be in the front door.
While (for most people subscribing) an extra two bucks a month isn't a big deal, with this latest increase, Disney+ ad-free now costs double the price that got all those subscriptions so quickly in 2019. And that is a big deal for families who want the content and have budgets.
It's also intentional. Hulu found out that it made more from ad-supported tiers than it did from ad-free (a more modest subscription fee, sure, but ad revenue on top of it), and now, other streamers want in on that action. They are raising ad-free tier subscription prices while keeping ad-supported at the same level, because they want you to choose ad-supported:
It's also intentional. Hulu found out that it made more from ad-supported tiers than it did from ad-free (a more modest subscription fee, sure, but ad revenue on top of it), and now, other streamers want in on that action. They are raising ad-free tier subscription prices while keeping ad-supported at the same level, because they want you to choose ad-supported:
Yup. It's very simple: the streamers want some Biden bucks in the 2024 election campaigns.
IF they accept political advertising (I'm having a hard time envisioning it on Disney+), it opens up enormous revenue possibilities from all candidates for national office, and IF they can geo-target, even regional and local.
As it is, without political advertising, Disney and Comcast (co-owners of Hulu) have discovered ads+a modest subscription fee>subscription alone.
To Kelly's point, I'm fortunate enough to absorb the price hikes. And I enjoy an ad-free experience.
Still, I have the Disney+/Hulu bundle, and that's gonna be $30.99 a month now, where the ad-tier would be $15.98. I might look really hard at that. Or I might ditch it once I finish this season of Only Murders in the Building and What We Do in the Shadows on Hulu (Disney+ is just for when the grandkids are here).
Still, I have the Disney+/Hulu bundle, and that's gonna be $30.99 a month now, where the ad-tier would be $15.98. I might look really hard at that. Or I might ditch it once I finish this season of Only Murders in the Building and What We Do in the Shadows on Hulu (Disney+ is just for when the grandkids are here).
So depending on how often one watches TV/streaming and which programming is most important to them, those who cut the cord to try and save money now have the option of paying for ad-free programming and if they have a few different subscriptions to allow them to watch programming they're really into, they could easily pay more than the cost of their cable subscriptions, or they can get the ad-tier level, still have ads to deal with and pay nearly as much as a cable subscription, again, depending.
Those who've chosen to stick with cable or dish still have plenty of options, but some programming is no longer available on traditional networks or cable, so if they want programming that's specifically on Disney+, Hulu, Amazon, Netflix, Discovery+, Peacock, etc. and some sports programming, especially as we move into college and pro football seasons, they still need to get a subscription to one or more of those streamers in addition to cable or dish, depending on how badly they want to see some contests.
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Right. Netflix, Amazon Prime, Max, Apple+, Hulu, Peacock, Paramount+, Disney+----if the new normal for ad-free is $14 a month, that's $112 a month.
Ad-supported---half that, but that's still $56 a month, which if you factor out internet service, is probably in the ballpark of what a lot of people pay for cable (not counting movie/sports packages, etc).
The difference is that (so far) ad-supported is more like four minutes of commercials per half hour show, about half that of traditional broadcast/cable. Fewer interruptions and shorter breaks.
The issue for us is that, even pre-pandemic, most of our viewing has been streaming shows.
Long term, I think some of this sorts itself out. I really don't believe there's room for eight major streaming players. When consolidation comes, I think you'll see three or four survivors---almost certainly Netflix and Amazon. Maybe Max, but that depends a lot on how WarnerBros. Discovery goes the next year or two.
The rest are merger bait. If the long-rumored Apple/Disney deal were to happen, that'd take Apple+, which, apart from a couple of really great shows (Severance and Shrinking), is pretty weak. If Apple doesn't merge with a studio, I think Apple+ remains a niche service and falls out of contention as a major streamer.
Absent that, Disney+ is likely to absorb Hulu. They and Comcast just hired investment analysts to determine a value for it yesterday.
And I don't see Peacock or Paramount+ surviving on their own.
I saw that bundle for $19.99/month so double check your pricing.
Attachments
That screenshot is dated 10/11/23---the new pricing took effect yesterday, 10/12.
My price had been $19.99. The bill just went through yesterday and it's gone to $24.99. Admittedly, that's six bucks less than Disney+ and Hulu as separate subscriptions at the new rate, but still...
Ok. But the article/table labeled these as rates effective 10/12
Reminder: Disney+, Hulu, ESPN+ Price Increases All Take Effect on Oct. 12. Is There Any Way to Save?
The day Disney’s streaming customers have been dreading is finally here. What are the best ways to save money on Disney+, Hulu and ESPN+ now?
thestreamable.com
So, I went digging and it turns out I have the Disney+/Hulu/ESPN+ bundle, when I thought I only had Disney+/Hulu.Ok. But the article/table labeled these as rates effective 10/12
Reminder: Disney+, Hulu, ESPN+ Price Increases All Take Effect on Oct. 12. Is There Any Way to Save?
The day Disney’s streaming customers have been dreading is finally here. What are the best ways to save money on Disney+, Hulu and ESPN+ now?
Ooooooooops.
Especially dopey since my wife and I lack the sports gene.
Gonna finish What We Do in the Shadows and Only Murders in the Building, then cancel until the next season of Only Murders drops in a year or so.
Want to talk about streaming subscription heartburn:
Every year I've purchased the DirecTV NFL Sunday Ticket for my wife's birthday. She's into the whole fantasy football thing.
This year NFL Sunday Ticket is only available via YouTubeTV. So, one has to subscribe to YouTubeTV which has essentially the same channel lineup as my DirecTV subscription, for $78 a month (paid for a full year in advance $960), plus $340 for Sunday Ticket. That's like $1,300 including taxes!
Every year I've purchased the DirecTV NFL Sunday Ticket for my wife's birthday. She's into the whole fantasy football thing.
This year NFL Sunday Ticket is only available via YouTubeTV. So, one has to subscribe to YouTubeTV which has essentially the same channel lineup as my DirecTV subscription, for $78 a month (paid for a full year in advance $960), plus $340 for Sunday Ticket. That's like $1,300 including taxes!
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