Disney reported slightly higher revenues than previously expected. Moreover, its smaller loss of subscribers pushed the value of shares in trading by as much as five percent.
However, the number of subscribers to the Disney+ service has declined, and all film and TV production departments are experiencing declines to a certain extent, which is still worrying for returning CEO Bob Iger (Bob Iger). On the other hand, amusement parks brought in revenue growth above the forecast.
Total Disney revenue for the quarter was $23.51 billion versus expectations of $23.37 billion, according to Refinitiv. Total Disney + subscriptions came in at 161.8 million vs. 161.1 million previously forecast.
During the conversation, Iger announced that the media and entertainment giant would reorganize, cut thousands of jobs, and cut $5.5 billion in current costs.
The company will now contain three divisions: Disney Entertainment, which includes most of the streaming and media operations; ESPN, which includes the popular sports TV network ESPN+; and the Parks, Experiences, and Products department.
Disney+ lost alot of subscribers
Iger’s return to the helm comes as legacy media companies grapple with a rapidly changing world, as the value of advertising shrinks and consumers increasingly ditch their cable subscriptions in favor of streaming. Even the streaming space has been difficult to navigate recently as costs have risen and consumers have become more conscious about their media spending.
The streaming service’s recent price hike likely led to the loss of about 2.4 million Disney+ subscribers during the quarter.
In addition, as Disney had indicated in earlier quarters, its direct-to-consumer business again posted an operating failure. In the latest quarter, operating loss was $1.05 billion, less than the $1.2 billion expected by Wall Street.
