Disney adding channels to Disney+? Company calls report 'speculative'
A report this week suggested Disney is looking at building channels into its Disney+ platform, and the company called it "speculative."
The Information reported, citing anonymous sources, the channels that the entertainment giant could incorporate into its more than four-year-old streaming platform would play pre-planned Disney content at all times.
They would resemble free ad-supported streaming television (FAST) channels and could air content focused on categories like Marvel or Pixar, according to the outlet.
When reached for comment about the report, Disney told FOX Business that "this was speculative" and that it had nothing to share.
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The Information tied the planned addition of FAST channels on Disney+ to the entertainment giant seeking to raise user engagement with the platform that it has rolled out changes like "Hulu on Disney+" to in recent months. Disney also aims to increase how much money it makes from ads, according to the report.
It has made forays into FAST channels with its ABC app, per The Information.
On multiple occasions, Disney has identified Disney+ and the rest of its direct-to-consumer streaming services as one of the "key building opportunities" at the company. Its other platforms are Hulu and ESPN+.
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The company reported a combined 224.5 million subscribers across its direct-to-consumer services at the end of the first quarter. That included 149.6 million Disney+ and Disney+ Hotstar subscribers.
CEO Bob Iger recently said Disney "remain[ed] poised to reach profitability in our combined streaming business by the end of this fiscal year, and deliver significant, sustained growth in the future" through various initiatives.
In the first quarter, Disney saw revenues of $6.075 billion from its direct-to-consumer streaming services. Their operating losses narrowed by 79% year-over-year, coming in at $216 million for the three-month-period.
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The company has also said it expects the business to "deliver double-digit profit margins in the future."
On top of streaming profitability, the other three main focus areas for Disney include "improving" the output and economics of its film studios, "turbocharging" growth in its Experiences segment and turning ESPN into a major digital sports platform.