2023-08-10 04:43:00
The streaming service fell from 157.8 million at the end of March to 146.1 million at the end of June (-7.4%), mainly due to the Indian market, following the loss of the broadcasting rights for the national championship. of cricket.
In all, the entertainment giant – which also owns amusement and theme parks, sports channel ESPN and a film division that includes studios such as Pixar Animation, Lucasfilm and Marvel Studios – achieved a turnover of business up slightly but slightly below analysts’ expectations, at 22.3 billion dollars over the period, according to its earnings press release published on Wednesday. The group recorded a net loss of $460 million, partly due to costs related to job cuts, compared to a profit of $1.4 billion a year ago.
From the end of September to the end of June, Disney+ lost 18 million subscribers in all. The fall in the spring is mainly linked to a 24% drop between March and June in India, where the version of the service, called Hotstar, weighs almost a third of the world total.
But the platform also saw a slight decline of 1% in North America, the second in a row.
However, it seeks to remain positive, assuring to expect a rebound in the number of subscribers during the current quarter, both in its domestic market and internationally.
Disney+ also faces significant competition in the US market, with players such as Netflix, Amazon Prime and HBO MAX. Due to high inflation, people have become more cautious when it comes to buying streaming services. Which, however, hasn’t stopped Netflix from gaining subscribers over the past quarter.
Disney must also face the problem of the decline of cable television in the United States, a long lucrative sector. In the last quarter, revenue from this sector fell 7% to $6.7 billion. Operating income fell 23% to $1.9 billion.
Disney+ loses subscribers for the first time, the group lays off 7,000 people
In financial terms, the entertainment giant’s streaming business remains loss-making, but it continued to reduce its operating losses in the quarter, to $512 million from $1 billion last year at the same period. A reduction of half, therefore.
Disney also saw its revenue for films and programs sold to cinemas and television stations decrease, to $6.7 billion.
Only revenue from amusement parks, cruises and derivative products increased substantially, by 13%, to 8.3 billion dollars. The activity generated an operating profit of 2.4 billion dollars (+11%).
Under the leadership of boss Bob Iger, the Enchanted Kingdom has undertaken to save money this year, in particular by eliminating 7,000 jobs and reducing content production.
This intervention should generate billions of euros in savings. During the coronavirus crisis, Disney had already had to take difficult measures, in particular due to the closure of theme parks. Tens of thousands of jobs were then lost.
Recalled to the helm at the end of 2022, Mr. Iger, 72, had previously led the company from 2005 to 2020. The group’s board of directors voted unanimously in July to extend his contract until the end of 2026.
But the iconic leader has waned in popularity in recent months. He faces a historic Hollywood strike: the actors joined the screenwriters in mid-July to demand an increase in their remuneration, at half mast in the era of streaming. They also want to obtain guarantees on the use of artificial intelligence (AI), to prevent studios from using it to generate scripts or clone their voice and image.
“Unrealistic” requirements, according to Bob Iger, shouted down in demonstrations from Los Angeles to New York.
“Nothing is more important to this company than its relationship with the creative community, actors, writers, directors and producers,” he said on a conference call Wednesday. “I have deep respect for all those who are vital to the extraordinary creative engine that powers this band and our industry.”
In Florida, Disney is in the midst of a battle with Governor Ron DeSantis. This personality of the American hard right, fighting against a supposed “woke” culture, ended in February the special status which the company had enjoyed in his state since the 1960s.
In May, the Californian group gave up building a nearly $900 million campus near its Florida amusement park.
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