How does Disney calculate revenue and profit for its streaming platform, Disney+?

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The key metrics Disney tracks are revenue growth, subscribers added, drift hunters, churn rate, and profit margins over time to gauge the performance of Disney+ as a critical growth driver.

1. Revenue Calculation:
   • Subscription Fees: The primary source of revenue for Disney+ comes from subscription fees paid by its subscribers. Disney charges a monthly or annual fee for access to its streaming service.
   • Advertising Revenue (if applicable): Depending on the specific offering in different regions, Disney+ may have an ad-supported version where it generates revenue from advertisers who run ads on the platform.
2. Costs:
   • Content Acquisition and Production: Disney invests heavily in acquiring and producing content for Disney+. This includes licensing fees for third-party content and investments in creating original movies and TV shows.
   • Technical Infrastructure: Running a streaming platform requires significant technical infrastructure and maintenance costs to ensure smooth delivery of content to millions of users.
   • Marketing and Promotion: Disney incurs expenses on marketing and promoting Disney+ to attract new subscribers and retain existing ones.
   • Operational Costs: This includes expenses related to customer support, payment processing, and other operational aspects of running a streaming service.
3. Profit Calculation: To calculate the profit for Disneyplus.com/begin would subtract the total costs mentioned above from the total revenue generated by the platform over a specific period. The difference between revenue and costs would represent the net profit.