And that’s the dirty not-so-secret about streaming: It’s not actually working. The boom is over.
Disney’s direct-to-consumer business — which includes Disney+, ESPN+ and Hulu —
lost more than $4 billion in 2022. The financial losses continue to climb even as subscribers grow. It’s a big reason Disney stock is down 31 percent over the past year. NBCUniversal’s Peacock lost around $2.5 billion for the year, and CBS’ Paramount Plus also lost around $1.8 billion. These companies planned to lose lots of money and aimed for profitability by 2024 or 2025, but there is little sign of that yet. Dramatic cuts have come across the board.
Fox’s decision not to jump into the standalone streaming game and instead focus on the biggest live sports like the NFL, college football and the
World Cup, has proven to be a more successful strategy thus far. It has increased its market share in college football, and despite the loss of cable subscribers, this year’s Super Bowl on Fox was the third-most-watched game ever and the highest in six years. As Fox Sports CEO Eric Shanks put it on a
Sports Business Journal podcast, speeding up into streaming also speeds up the decline of linear TV, your actual money-maker.