Write a 3 page executive summary
Revenue forecast and assumptions
For Disney+ and Hulu streaming service first year in Mexico, the annual forecast revenues is expect to reach $ 216,620,000 with 38,000,000 subscribers. Disney+ will enter into the Mexico streaming market by providing a low price with bundle service to compete with its competitors. First, we will be assuming that we will have at least a 14% increase of new Disney+ subscribers. After six months our subscribers will increase by a little more than 10% every month.
We also forecast Disney+ subscribers will continue to grow each month and there's no reason to believe that won't continue. By the end of the fourth quarter, revenue will reach up to $86,648,000. This will be accomplished by not only growing subscriber base but also by the company's pricing power. We are also assuming the average subscription price (ASP) grew 3% year over year, and excluding the impact of foreign exchange headwinds, international ASP increased by 6%.
The method used for this study is combination of aggressive and conservative methods, which eminently works best for Disney+. The assumptions made for forecasting are as follows:
· Offer different contents Hulu only, Disney+, and bundle
· Entry price are lower than competitors
· The revenues are expected to increase by more than 10% after 6 month
· Estimate to have 38,000,000 subscribers by at the end of the first year
· Partner with local cellular company to attract more subscribers
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Disney+ and Hulu REVENUE Forecast and assumptions |
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Year 1 |
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Hulu |
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# of subscribers |
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9,000,000 |
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Price persubscribers |
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4.99 |
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Total |
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44,910,000 |
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Disney+ |
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# of subscribers |
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20,000,000 |
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Price persubscribers |
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4.99 |
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Total |
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$99,800,000 |
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Bundle |
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# of subscribers |
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9,000,000 |
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Price persubscribers |
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7.99 |
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Total |
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71,910,000 |
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Net Revenue |
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216,620,000 |
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Months |
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Year 1 |
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Month 1 |
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0 |
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Month 2 |
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0 |
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Month 3 |
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0 |
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Total 1st Quarter |
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0 |
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Month 4 |
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10,831,000 |
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Month 5 |
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17,329,600 |
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Month 6 |
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21,662,000 |
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Total 2nd Quarter |
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49,822,600 |
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Month 7 |
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21,662,000 |
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Month 8 |
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25,994,400 |
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Month 9 |
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32,493,000 |
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Total 3rd Quarter |
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80,149,400 |
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Month 10 |
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25,994,400 |
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Month 11 |
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28,160,600 |
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Month 12 |
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32,493,000 |
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Total 4th Quarter |
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86,648,000 |
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Total for year |
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216,620,000 |
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Average Revenue |
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by Month |
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18,051,667 |
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by Quarter |
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54,155,000 |
Month 1 Month 2 Month 3 Total 1st Quarter Month 4 Month 5 Month 6 Total 2nd Quarter Month 7 Month 8 Month 9 Total 3rd Quarter Month 10 Month 11 Month 12 Total 4th Quarter Month 1 Month 2 Month 3 Total 1st Quarter Month 4 Month 5 Month 6 Total 2nd Quarter Month 7 Month 8 Month 9 Total 3rd Quarter Month 10 Month 11 Month 12 Total 4th Quarter 0 0 0 0 10831000 17329600 21662000 49822600 21662000 25994400 32493000 80149400 25994400 28160600 32493000 86648000