BREAKING: Disney+ Is Still Losing Money — But It Is Heading In The Right Direction
Today was a big day for the Walt Disney Company as they released their Q1 earnings results.
The last time the company had an earnings call, Disney + reported a larger than expected loss. In November 2022, the company revealed that it had missed its revenue expectations and badly under-performed its Adjusted Earnings Per Share projections.
Bob Chapek was removed as CEO following Disney’s previous earnings call. Photo: CNBC
Following the release of the disappointing earnings call, Disney shocked the business world by removing CEO Bob Chapek and bringing back Bob Iger. The question remained, however, could he turn the ship around?
The Streaming Problem
One of the biggest challenges facing Iger upon his return has been the profitability of the company’s streaming service, Disney+.
With Iger back at the helm, Disney seems to have rebounded in their first fiscal quarter of the year.
Although Disney’s streaming service lost nearly 2.4 million subscribers, this was less than the 3 million losses that Disney had expected.
The company is chalking up the bulk of the subscriber losses to the recent price hike for the streaming service.
Photo: Chip Somodevilla/Getty Images
Although Disney’s direct-to-consume business once again posted an operating loss, that number still managed to beat projections.
Better Than Expected Results
According to today’s earnings call, Disney+ was operating at a $1.05 billion loss. While that may sound bad, this was actually less than the $1.2 billion that Wall Street had projected.
For context, Bob Chapek revealed that the company’s streaming service had lost $1.474 billion before he was unceremoniously let go by the company last November. All in all, the company managed to shave nearly $500 million off of its losses.
Photo: PRNewsFoto/The Walt Disney Co.
As Bob Iger continues to wrestle with an ever-changing media landscape, the Disney CEO believes that it will be the company’s creativity that will keep them going strong
“We believe the work we are doing to reshape our company around creativity while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders,” Iger said in a statement.
Photo: Chesnot/Getty Images
While Disney Parks continued to prove their profitability, all eyes will continue to be on streaming and Disney plus in the near future.
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