18 Jan Deloitte: Media Companies Seek Streaming Profit on Declining Revenue [Media Play News]
BY ERIK GRUENWEDEL
January 18, 2023 | New data from auditing consulting firm Deloitte found streaming generates one-sixth the revenue per home as legacy pay-TV. Yet, despite the fiscal imbalance, media companies continue to break the bank investing in direct-to-consumer digital entertainment.
Disney, in its most-recent quarterly report, disclosed that its direct-to-consumer business, which includes Disney+, ESPN+ and Hulu, lost $1.5 billion over the 90-day period. The business isn’t projected to be profitable until 2024.
In 2019, Deloitte found that U.S. TV networks generated around $100 billion in advertising, retransmission and affiliate fees — excluding consumer subscription revenue. By comparison, SVOD/AVOD platforms generated just $19 billion in collective revenue. At the same time, the report contends pay-TV lost around 17 million subscribers to SVOD in 2019, costing pay-TV about $9 billion in revenue.
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