The profitability of (or lack there of) these services always seemed like a shell game.
It takes time to make a profit, for example, it had taken 6 years for both DirecTV and Netflix to have their first profitable quarter ( Netflix had a few unprofitable quarters after that, look at them now), Dish Network and Amazon 9 years.
Now today, look at where Netflix and Amazon are, then look at DirecTV, whose profits are shrinking every quarter because of sub loss (now over 15 Million have left and growing) and Dish Network, who has had two unprofitable quarters in a row, who's only hope is if someone loans a lot of money, about $15-20 Billion to cover the next 3 years or invests in the company.
Disney+ did it in 5 Years.
I don't see how ESPN+ makes "money" in any sense of the word that is credible, other than the cost to distribute the signal is less than the revenue from distribution.
ESPN+ will soon be going away, first it will be combined with the new service from Disney, Warner and Fox, the Sports centric Live Channel streaming service.
Then when ESPN launches their streaming service, ESPN+ will be combined with that.
My problem is where is the cost of the programming being saddled?
That will soon be changed , the production costs will be spread amongst all of them.
Instead of having the costs of streaming content in one house, Broadcast/Cable Channels in another and then licensing fees also.
They will combine all of them together to share the costs and shows.
For example, shows will appear on the paid service first, then on the channels second.
We are already at the point where some Cable Channels are no longer producing new content, because they are not taking in enough $$$, Broadcast Networks is about two years away.
Some are already doing this, FX's budget has been combined with Hulu, that is why new shows premiere same day, on the Cable Channel in 720P, on Hulu in 4K.
Sports rights are also spread out over all of the companies, streaming and broadcasting.
And yes, this will result in less content, which will also help keep costs down.
The trouble with Disney+ is that their content is limited. It has a lot of popular stuff, but it doesn't take long for the consumer to become saturated with the content.
Which is why they have been buying so much, Fox, Star Wars, Marvel, etc.
If it was just plain old Disney, I agree, but with the rest, there is plenty of other content, for example on Disney+, we still have two new Live Action Star Wars and two for Marvel, plus all new movies that are at theaters this year, for example the new Planet of the Apes and Alien ( both Fox properties) will be on about 3 months after theaters.
Probably a reason to stop selling physical media to force people to have to stream.
All studios, not just Disney, is planning this.
Yes they will license more to the smaller companies, like Arrow and Shout, but since no new players are being designed and soon production will stop on building, the industry will die out over time, just like VHS and Laserdiscs.
Also does not help the only place to purchase will soon be online, stops all impulse buys at the physical stores.