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August 19, 2023

Disney Reveals SHOCKING Losses On Last 10 Films NEARLY 2 BILLION & Potential Sale To Apple Is Real!

TheQuartering [8/18/2023]

According to TheNewYorkTimes:

Robert A. Iger’s urgent need to overhaul Disney — to turn its streaming division into a profitable enterprise and pull back on its troubled traditional television business — came into sharp relief on Wednesday.

Disney’s streaming operation lost $512 million in the most-recent quarter, the company said, bringing total streaming losses since 2019, when Disney+ was introduced, to more than $11 billion. Disney+ lost roughly 11.7 million subscribers worldwide in the three months that ended July 1, for a new total of 146.1 million.

All the decline came from a low-priced version of Disney+ in India. Last year, Disney lost a bid to renew the expensive rights to Indian Premier League cricket matches. Excluding India, Disney+ gained 800,000 subscribers, primarily overseas.

To make streaming profitable, Mr. Iger, Disney’s chief executive, has shifted the focus at Disney+ away from brisk subscriber growth, which requires expensive marketing campaigns. Instead, Disney has been trying to make more money from the Disney+ subscribers it already has. The monthly price for access to an ad-free version of Disney+ rose to $11 in December, from $8.

Another hefty price increase is on the way. Starting on Oct. 12, the ad-free version will cost $14, Disney said. Hulu, which is also controlled by Disney, will begin charging $18 for ad-free access, up from $15. As an incentive, Disney will begin selling a new streaming package — ad-free access to both Disney+ and Hulu — for $20 a month starting on Sept. 6.

The ad-supported options for both Disney+ and Hulu will remain the same, at $8. “We’re obviously trying with our pricing strategy to migrate more subs to the advertiser-supported tier,” Mr. Iger told analysts on a conference call. The pricing news, along with a vow by Mr. Iger to follow Netflix by cracking down on password sharing, sent Disney shares up roughly 2 percent in after-hours trading.

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