Disney’s earnings slump on streaming concerns

Big media firms have a conundrum, as evidenced by Disney’s quarterly earnings report: traditional TV still makes money but is losing ground, while streaming is expanding but remains unprofitable. In the third fiscal quarter, adjusted earnings per share decreased to $1.03, a 6% decrease from the same quarter the previous year.

Disney’s revenue rose by 4% to $22.3 billion, but its profit of 96 cents per share exceeded expectations. Analyst forecasts for revenue of $22.5 billion were not met. The main goals of Disney’s transformation are to reorganise, increase productivity, and revive creativity. While streaming businesses cut losses in half from the same metric the previous year, operating income for linear networks plunged 23%.

Disney+, the conglomerate’s flagship streaming platform, saw shrinking losses due to higher subscription revenue and lower marketing costs.

Direct-to-consumer revenue for the third quarter grew 9% to $5.5 billion, with Disney+ charging headlong into the streaming wars. Disney’s parks, experiences, and products segment, including Disneyland, saw operating income increase 11% to $2.4 billion, partly due to post-pandemic changes at the company’s international parks.

Domestic park results were lower due to a decrease at Walt Disney World Resort due to higher costs and lower attendance.