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Bloq t1_ix0vysv wrote

Reply to comment by jl_theprofessor in How Did AT&T's $100 Billion Time Warner Deal Go So Wrong? by ix0WXOeip4V6

Isn't that how it worked with Disney+ though? They've done precisely the same thing as HBO Max

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Dranj t1_ix14tup wrote

Disney+ also recently posted a $1.5 billion loss. It's only because Disney is capable of counteracting that loss with their other business ventures that they're able to sustain it. Even so, Disney+ is increasing its subscription price and introducing an ad tier.

This article from a couple weeks ago goes into further detail.

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kaenneth t1_ix2run8 wrote

I bet they sold more than $1.5 billion in Baby Yoda merch alone.

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jl_theprofessor t1_ix0wrk8 wrote

Yes but in this case Disney had multiple other revenue channels to subsidize their undercutting of competing streaming apps. ATT was losing cable subscribers and simultaneously cut off revenue channels on streaming. And HBO as a brand never had the widespread appeal that Disney did.

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