Disney May Cut Content Spending In 2023 Due To The WGA Strike
While Disney originally pegged its total cash content spending at $30 billion for 2023, the ongoing Writers Guild of America strike might drive that number down.
At the MoffettNathanson’s Technology, Media and Telecom Conference in New York, Disney CFO Christine McCarthy addressed the strike.
Photo: HOLLY BROBST, THE WALT DISNEY COMPANY
“If you haven’t noticed we’re in the middle of a writers’ strike,” McCarthy began. The Disney CFO then went on to explain that Disney may reduce its cash spending on content for the balance of the year.
Scarcity Of Scripted Content At Disney’s Upfront
At the MofetNathason conference, McCarthy appeared alongside Disney president of ad Sales Rita Ferror. The Disney execs spoke just one day after the company’s upfront presentation in New York.
Source: Complex.com
This year’s upfront was noticeably light on scripted fare due to the ongoing writers’ strike. With that being said, Marvel’s Kevin Feige previewed the upcoming Disney+ series Secret Invasion and announced premiere dates for Lokie Season 2 and Echo.
Disney’s Ongoing Cost Cutting
Even prior to the writer’s strike, Disney was in the midst of a company-wide cost-cutting initiative.
According to McCarthy, the most immediate effect of Disney’s cost-cutting will be “plain-old, blocking-and-tackling SG&A.”
Photo: Chip Somodevilla/Getty Images
“Those are the things we are doing right now… It is tough work. It’s emotionally draining,” she continued.
As Disney continues to face uncertain profitability prospects in streaming, the company has not put out a target on streaming margins.
Credit: Disney
“We’re focused on break-even, which is firmly in our sights,” McCarthy said.
In the end, Disney will likely be able to survive the writer’s strike. In an ever-evolving media landscape, however, the strike is another hurdle for Disney Entertainment to overcome.
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