For the first time since it launched, Disney’s video streaming division—which includes Disney+ and Hulu—has reported a quarterly profit. Naveen Sarma, media and telecoms managing director at S&P Global Ratings, says he’s looking beyond the number of subscribers and examining what this means as a whole for the legacy media company.
He says he views the real value as coming from growth on the advertising side—something Disney’s competitors are struggling to succeed with. Mr. Sarma also looks at Disney’s theme park division, and why consumers could soon start skipping visits to Disneyland.