Walt Disney World Q4 Earnings Report: Streaming Up But Key Targets Missed
For those following along with MickeyBlog, today was the 2022 Q4 earnings call for the Walt Disney Company. Disney’s streaming inititiatives continue to show growth, however, stocks took a hit as Q4 earnings weren’t as favorable as expected.
Overall revenue at the Walt Disney Company rose 9% over the quarter and 23% over the year. Subscriber totals for Disney+ are now at 162.2 million and there are currently 235 million subscribers across all Disney’s streaming networks worldwide. That’s an increase of 14.6 million subscribers, 12.1 of which are at Disney+.
The total number of subscribers at Disney’s other streaming networks are as follows:
- ESPN- 24.3 million
- Hulu – 47.2 million
The direct-to consumer business division at The Walt Disney Company however reported a loss of $1.5 billion for the quarter. Despite the loss, Disney execs argue that they are still on target to see profitability with Disney+ by 2024.
“2022 was a strong year for Disney, with some of our best storytelling yet, record results at our Parks, Experiences and Products segment, and outstanding subscriber growth at our direct-to-consumer services, which added nearly 57 million subscriptions this year for a total of more than 235 million,” said CEO Bob Chapek. “The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate.”
One of the strategies for increasing profitability is the introduction of a new Disney+ ad supported tier coming on December 8th. Under the model, subscribers can pay $7.99 a month rather than $10.99 if they agree to advertisements. Disney will then profit not only from advertising revenue but an increase in the standard (non-advertising) subscriber package.
For those with Disney shares, they were marked down 6.85% at the end of Wall Street trading today. They are expected to sit at $93.06 at the start of trading tomorrow.
You can check out the full earnings report and listen to the earnings call here.
Readers are encouraged to keep following along with MickeyBlog for further Walt Disney World news and updates. We’ll be coming to you LIVE! from the theme parks each and every week.
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