Walt Disney said it will be forking out $14-$16 billion in content spending in fiscal 20204 on streaming serices Disney+, Hulu and ESPN+ as it ramps up original series and films to the tune of 100 a year.
Between $8-9 billion of that will go to Disney+, said CFO Christine McCarthy towards the end of marathon investor meeting Thursday. That’s at least double what was initially anticipated.
She anticipated Disney+ and its international iterations will hit between 230-260 million total paid subscribers by that year. The service will reach its peak year of losses in fiscal 2021 and hit profitability in 2024.
She expects Hulu will have 50-60 million subs by the end of 2024, including its Hulu Plus Live TV service. It will hit profitability in fiscal 2023. Disney’s fiscal year ends in September.
And ESPN+ will garner 20-30 million subscribers by the ennd of 2024, she predicted, and reach profitability the year before, in 2023.
As a testament to how dramatically streaming has reshaped the business, the company starting in the current fiscal first quarter will condense its financial reporting lines into two – media and entertainment and Disney parks, experiences and products. That follows a revamp of its management into two main content and distribution groups.