The Walt Disney Company (DIS) released its third quarter earnings revealing that its streaming business was profitable for the first time. With announcements from the company to focus on quality over quantity, can Disney’s streaming unit sustain its recent success?
The Walt Disney Company CFO Hugh Johnston joins Yahoo Finance Executive Editor Brian Sozzi to give insight into the company’s earnings and its success in the streaming business.
“The advertising model has been been terrific. As we’ve improved the product, we’re seeing churn go down, we’re seeing engagement go up. In addition to that, you’re just seeing more and more of our own IP, really high quality IP, attract more and more subscribers. So growth is certainly a factor. And then of course pricing is a factor. And we’ve taken some pricing. And because we’re putting so much value into the service, I expect we’ll continue to take some pricing over the course of time,” says Johnston.
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This post was written by Nicholas Jacobino