Hello everyone. Happy Tuesday. Today's discussion will take us into paid video streaming land. Last week, Disney reported CY1Q23 earnings. We go over Neil’s thoughts on the earnings release. The update then turns to Bob Iger’s plan to combine Disney+ with Hulu in a new streaming app. We conclude with a look at Hulu’s future as it pertains to Disney and Comcast.

Let's jump right in.

Disney Earnings

Disney’s FY2Q23 earnings were good. Overall revenue was up 13% while free cash flow was just shy of $2B. Over the past year, there hasn’t been a shortage of mediocre to poor quarters in the tech and media space. However, Disney’s CY1Q23 results reflect the benefits found with a truly diversified business model in the media space (IP that can be monetized in various ways). Disney Parks and Experiences remains on a tear with ~20% revenue growth and strong operating income. Excluding timing issues with higher sports programming costs, even Disney’s Linear Networks results were OK, helping to offset continued financial losses found with Disney+. Management claims streaming losses peaked last year.

Here are Disney’s DTC subscription totals (as of April 1st, 2023):

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