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State of the Screens

Can Disney+ Keep The Magic Alive?

By November 19, 2020No Comments

Big news: Disney+ continues to exceed expectations as other business lines are negatively impacted by the pandemic.

Disney+ subscribers (QoQ growth):
1) 
2019-Q4 – 28.6M
2) 
2020-Q1 – 54.5M (↑ 91%)
3) 2020-Q2 – 60.5M (↑ 11%)
4) 2020-Q3 – 73.7M (↑ 22%)

Disney streaming subscribers by platform according to Variety:
1) 
Disney+ – 73.7M
2) 
Hulu – 32.5M
3) 
ESPN+ – 10.3M

Hulu Live subscribers (YoY growth):
1) 
2017-Q3 – 300K
2) 
2018-Q3 – 1.2M (↑ 300%)
3) 2019-Q3 – 2.7M (↑ 125%)
4) 2020-Q3 – 4.1M (↑ 52%)

Big question #1: What drove subscription growth for Disney+?

Quick answer: The Mandalorian Season 2 drove 3X the normal number of signups.

Interesting: According to ANTENNA, 29% of recent sign-ups were re-subscribers.

Big question #2: How can Disney+ become more significant for Disney?

Quick answer: A rundle.

WTF is a rundle?  A rundle is a bundle of services with a recurring revenue (subscription) business model (h/t: Scott Galloway).

A Disney rundle could include:
1) Member-only access to parks
2) Member-only cruises
3) Early access to in-home viewing for tentpole films

Quick math on a Disney rundle:
1)
 85M families w/ children in the US, Japan, and the EU
2) 52M subscribe to Disney rundle
3) $50 per month
4) $2.6B per month
5) $31.2B per year

Video: Disney Postmortem: Disney+ Kool-Aid Washes Away Bitter Q4 Aftertaste

More #1: What Disney+ Has Done Right and Wrong One Year Later

More #2: Unleash the Mouse

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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