As we gather here to take a look at the State of Disney, we look back at the most transformative year in a generation. Disney completed the long-awaited acquisition of 21st Century Fox and Disney has continued the streaming transition with the launch of Disney+ and taking operational control of Hulu. Meanwhile, the parks have launched to largest scale single land experience with Star Wars: Galaxy’s Edge at the Disneyland Resort and Walt Disney World.
We are here as Disney announces better than expected earnings. As part of the announcement, Disney announced more Disney+ subscribers than expected. Disney+ gained 26.5 million subscribers in a month and a half. ESPN+ grew from 1.4 million a year ago to 6.6 at the end of the calendar year. Hulu also grew from 22.8 million to 30.4.
The studio broke their own records with successes including Frozen 2, Star Wars: The Rise of Skywalker, and Avengers: Endgame. The parks have seen growth with increased guest spending and attendance while continuing to build new experiences that will continue to dream big.
This does not mean Disney is not facing challenges. While our thoughts are with all of those impacted by the coronavirus, the undetermined closure of Shanghai Disneyland and Hong Kong Disneyland will have an impact. The ending of the Infinity Saga and the Skywalker Saga have concluded storytelling that had a strong emotional investment. And while we convert to streaming, the cultural change impacts their linear networks in ways that have to be closely managed.
But endings can be new beginnings. Excitement for The Mandalorian and the recently teases Disney+ shows from Marvel Studios will facilitate interconnected storytelling in new ways. And while streaming is disrupting the business, Disney’s streaming future is exciting. Also, while Star Wars: Galaxy’s Edge was the largest scope experience ever built, it shows what the talented folks at Imagineering can do in the future.
The only constant thing in the universe is change. And with departure of 20th Century’s Emma Watts and Hulu’s Randy Freer, change will continue. While the future of 20th Century Studios has yet to be laid out, it will be interesting to see what its next chapter will be. At Hulu, we will see what an integrated Hulu looks like and begin laying the groundwork for its international expansion.
Whether it’s Avengers Campus, WandaVision, or the second season of The Mandalorian, there is a lot to get excited about. If 2019 was the year of change, 2020 will lay the groundwork for capitalizing on that change. As the recent reveal of the Spider-Man “stuntronic” shows, the bedrock on which the Walt Disney Company is based is still innovation, creativity, and technology. Thanks to the work of 223,000 Cast Members, crew members, Imagineers, and employees, The Walt Disney Company is strong.