Disney Plus Blows Past Expectations with 73M Subscribers

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

Disney Plus Blows Past Expectations with 73M Subscribers
  • Streaming continues to outperform expectations, led by Disney Plus, where worldwide subscribers have grown past 73 million.
  • Disney's other divisions remain in a tough spot, though live sports has helped the company's media networks division.
  • The formerly lucrative amusement parks division's struggles continue, with Disneyland expected to remain closed until 2021, prompting chief executive Bob Chapek to take a shot at California Governor Gavin Newsom.

Disney Plus was the shining star for Disney's year-end earnings report on Thursday. Paid subscribers blew past expectations to 73 million as of October 3rd. Reported quarterly revenue of $14.7 billion beat Wall Street expectations, although it still represents a 23% decrease year-over-year.


Disney shares jumped by as much as 6% in after-hours trading on the news.

Part of Disney Plus' subscriber boost can be attributed to the July release of "Hamilton," anticipation for season two of "The Mandalorian" that began to roll out in October, and the move to bring "Mulan" to the platform for a $30 fee, rather than proceed with a (delayed) theatrical release.

The company did not provide specific figures for "Mulan" on Disney Plus, though chief executive Bob Chapek noted that its performance suggests "we've got something here in terms of the premier-access strategy."

Notably, over a quarter of Disney Plus' subscribers come from Disney's Hotstar subsidiary in India, where the average revenue-per-user is below $1, according to media analyst Rich Greenfield.

More subscriber growth is likely, as Disney Plus will launch in Latin America next week, Chapek said in prepared remarks. Pixar's "Soul" will also premiere on the service, for free, in December.

Overall, Disney's streaming umbrella, which includes Hulu and ESPN Plus, now boasts over 120 million subscribers worldwide. When Disney Plus launched in November 2019, the company had projected it would take five years to gain 60 - 80 million subscribers.

"The real bright spot has been our direct-to-consumer business, which is key to the future of our company," Chapek said in a statement, adding that Disney will be "heavily tilting" its investment from linear to DTC.

Disney's Downside

While that streaming-centric future has been accelerated by the pandemic, the coronavirus continues to devastate Disney's parks and experiences division. With some parks shuttered completely and others operating at limited capacity, quarterly income fell $2.4 billion year-over-year, while full-year income fell $6.9 billion.

That loss fell heavily on the company. Overall quarterly operating income fell 82% year-over-year. Fiscal year total revenues saw a 6% decline to $65.4 billion, while operating income fell 45%.

The company expects Disneyland to stay closed until 2021. Chapek took a shot at California Governor Gavin Newsom, who has ordered Disneyland to remain shuttered indefinitely.

"We are extremely disappointed that the state of California continues to keep Disneyland closed," said Chapek in his prepared remarks. "We believe state leadership should look objectively at what we've achieved at our parks around the world.... as opposed to setting an arbitrary standard."

Chapek noted that Orlando-based Disney World has been able to increase from 25% capacity when it reopened in July to 35% capacity while remaining in compliance with social distancing guidelines.

He also expressed optimism despite the bleak figures. "Through forward bookings and reservations, people are showing encouraging signs to spend time with us at a Disney park," he said.

Disney's media networks, which include ESPN, ABC, FX and the Disney Channel, saw a revenue bump for both the quarter and the year, of 11% and 14%, respectively, boosted by advertising associated with the return of live sports. On the studio side, with production continuing to face challenges, quarterly revenues fell 52%, while the yearly figure dropped 13%.

    The company also announced it is permanently suspending its dividend, which some investors have been calling for in order to invest further in streaming.

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    Wonder Dynamics: Redefining the Animation Landscape
    Wonder Animation

    🔦 Spotlight

    Happy Friday, LA!

    Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

    Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

    What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

    As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

    With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


    🤝 Venture Deals

    LA Companies

    • Evite, an online platform enabling users to design, send, and manage digital invitations and eCards with tools for event organization and guest tracking, has received a strategic growth investment from Francisco Partners to accelerate innovation and expand its product offerings. - learn more
    LA Venture Funds
    • F4 Fund participated in a $4.1M Pre-Seed funding round for Further, a platform designed to help first-time homebuyers determine how much home they can afford by providing personalized insights on interest rates and lender requirements, giving users a clear view of their purchasing power. - learn more
    • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
    • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
    • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

        LA Exits

        • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
        • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

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              Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

              🔦 Spotlight

              Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

              ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

              Image Source: Dodgers

              💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

              Image Source: ChatGPT

              🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

              From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


              🤝 Venture Deals

              LA Companies

              • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
              LA Venture Funds
              • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
              • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
              • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
              • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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                  Billion-Dollar Milestones and Snapchat’s New Features

                  🔦 Spotlight

                  Happy Friday Los Angeles!

                  This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

                  Image Source: Snap

                  Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

                  Image Source: Liquid Death

                  ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

                  Image Source: Altruist

                  Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

                  Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

                  Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


                  🤝 Venture Deals

                  LA Companies

                  • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
                  LA Venture Funds
                  • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
                  • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

                  LA Exits


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