It’s been a rough year for The Walt Disney Company.
According to a report from Variety, Disney lost $1.5 billion dollars on its streaming platforms Disney+ and Hulu in its fiscal fourth-quarter.
“The Burbank, CA owner of the ABC television network, the Pixar movie studio and the Disney+ and Hulu streaming hubs said Tuesday that net income from continuing operations was essentially flat, rising just 1% to $162 million, compared with $160 million in the year-earlier period,” Variety reports. “The results come after Disney saw an operating loss in its streaming operations of $1.5 billion — $800 million more than the year-earlier quarter. The company said the loss was due to a higher loss at Disney+ and a decrease in results at Hulu.”
“Disney seems prepared to carry the losses in order to keep creating more streaming content,” Variety continues. “Disney CEO Bob Chapek cited a ‘strategic decision to invest heavily in creating incredible content and rolling out the service internationally,’ in prepared remarks, and said Disney expects “our DTC operating losses to narrow going forward,” and that Disney+ reaching “profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate”. The CEO suggested that price increases for Disney+ would be implemented in due course and suggested a new ad-supported tier for the service would help generate revenue.”
More over at Variety:
Disney Ekes Out Slim Profit as Streaming Losses Grow https://t.co/QwOfZCquiw
— Variety (@Variety) November 8, 2022
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