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The numbers
180.7 million — Disney+ and Hulu subscriptions after an increase of 2.5 million compared to Q1.
$336 million — Direct-to-consumer operating income after a $289 million increase.
32% — ESPN Q2 primetime increase in Adults 18-49, ESPN’s most-watched Q2 in primetime ever, according to Disney CEO Bob Iger.
$23.6 billion — Revenue following a 7% increase year over year in Q2.
29% — Domestic advertising revenue growth thanks to a boost from college football playoff games and the NFL.
The watercooler talk
In Disney’s Q2 earnings call on Wednesday, CEO Bob Iger said he was optimistic about the company despite economic headwinds, even announcing a new park being licensed in Abu Dhabi. Iger was also enthusiastic about the company’s direct-to-consumer streaming offerings, despite advertising being slightly down due to more competition.
During the call, Iger noted that Hulu’s integration into Disney+ has had a positive impact, increasing engagement and decreasing churn “significantly. The CEO added that more integration was on the way as the company looked to turn streaming into a “true growth business.” Iger said technology improvements are imminent for the streaming platforms, with paid sharing already coming to Hulu, more personalization and customization coming to the platforms, and strides coming in adtech, with “significant” improvements coming in the “near term.” In a previous earnings call, Iger noted the streamer would also get a more dynamic home screen.
Additionally, the company’s streaming bundles will integrate ESPN’s upcoming flagship streamer, which will get pricing and the reveal of its real name next week. (Sorry, it’s not called “flagship,” Iger noted.) And though the ESPN bundle will be “another big step” for Disney’s streaming, the company will also keep teasing sports on Disney+ and Hulu to woo more bundle subscribers.
Key quote
“I was just taken through a road map for the rest of the year, so we’re not talking about many years,” Iger said. “We’re talking about near term, where the technology improvements to the platforms will be significant.”
