The streaming platform reported quarterly revenue below expectations and lost nearly 12 million subscribers.
Disney
In recent days, Bob Iger, the CEO of Walt Disney, publicly acknowledged the challenges facing the company in the short term. In his quarterly report, Iger highlighted the company’s efforts to reduce costs and its continued focus on creativity. Despite quarterly results that showed some weakness, Disney shares were up 3% in after-hours trading.
One of the points highlighted by Iger was the progress in Disney’s streaming business. The company achieved a $1 billion increase in operating income in this sector over the past three quarters, with a goal of reaching profitability by 2024. However, it also recognized the need to improve the quality of Disney movies and addressing challenges such as the screenwriters’ and actors’ strikes in Hollywood, which have affected film and television production.
Disney’s strategy includes raising prices on its Disney+ streaming platform and introducing ad-supported options in Europe and Canada. The company is also evaluating ways to address the problem of password sharing on its streaming services, following the path of measures implemented by Netflix.
Although Disney’s fiscal third quarter results beat earnings expectations and reported increased revenue, quarterly revenue was also below projections for US Disney+ subscribers. In addition, the company faced losses in its streaming services business, but managed to reduce these losses compared to the previous year.
In a move to attract and retain subscribers in an increasingly competitive streaming market, Disney has decided to reduce the number of titles it releases and adjust costs per title. These decisions reflect the company’s commitment to adapt to changing public demands and ensure the sustainability and growth of its operations.
The next few months will be crucial to see how the changes implemented will influence the perception and participation of users on the Disney platforms.
2023-08-12 20:04:57
#Disney #announces #ban #shared #accounts
