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Disney Q1 2024: Glossy announcements as Disney+ churns

9 February 2024
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Disney's bottom line results were flattered by a year-long cost cutting drive: the decline in linear entertainment revenue is accelerating and direct-to-consumer subscriber growth has temporarily stalled.

A new sports JV with Warner Bros. Discovery and Fox, along with other announcements are designed to grab attention in midst of turbulent shareholder rebellion.  Disney also—at last—unveiled a new games initiative with a $1.5 billion equity stake in Epic Games and a major immersive universe to attract younger audiences.

Disney's approach to the licensing of content to third parties is nuanced and so will be its effect on the perception of Disney+'s exclusivity.

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Disney Q4 2023 results: Freeing up cash

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CEO Bob Iger has announced that Disney is now in a "building" phase—indicating that the strategic turnaround is complete—however, upcoming breakeven of  streaming products owes much to cuts on programming spend

With the rest of Hulu soon to be acquired, Disney looks as if it is pulling out of India—this will make the company's presence outside of the US even more peripheral

In the UK, Disney+'s advertising-supported tier is now live, however, there are forces at play that limit Disney's ability to execute its tiering strategy as effectively as its biggest streaming competitor

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Disney Q3 2023 results: Rougher weather ahead

10 August 2023

Thanks to Parks (+11% YoY, $2.43 billion), Disney's Q3 operating income remained flat, balancing the decline from Media and Entertainment (-18% YoY, $1.13 billion) as DTC only lost $512 million and linear dropped by 23% ($1.89 billion). No new major growth initiatives were announced but Disney will look to stem DTC losses through Disney+ price rises and a password sharing crackdown.

Major segment resets are looming as Disney looks for new partners for ESPN and possibly buyers for its legacy TV business, ABC.

A difficult remainder of the year will be prolonged if the Hollywood talent unions strike into the autumn and beyond, while Bob Iger stays on as CEO through 2026.

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Farewell to Peak TV Disney: Q2 2023 results

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Disney is deep into a race to improve direct-to-consumer (DTC) earnings faster than linear TV profitability falls. It will be a close call.

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In Europe, Disney’s battle plan is one step behind, with significant price increases yet to be tried, cuts to be implemented, and sales to broadcast partners just beginning.

Access report

  • Disney Q4 2023 results: Freeing up cash

    9 November 2023

    CEO Bob Iger has announced that Disney is now in a "building" phase—indicating that the strategic turnaround is complete—however, upcoming breakeven of  streaming products owes much to cuts on programming spend

    With the rest of Hulu soon to be acquired, Disney looks as if it is pulling out of India—this will make the company's presence outside of the US even more peripheral

    In the UK, Disney+'s advertising-supported tier is now live, however, there are forces at play that limit Disney's ability to execute its tiering strategy as effectively as its biggest streaming competitor

    Access report

  • Disney Q3 2023 results: Rougher weather ahead

    10 August 2023

    Thanks to Parks (+11% YoY, $2.43 billion), Disney's Q3 operating income remained flat, balancing the decline from Media and Entertainment (-18% YoY, $1.13 billion) as DTC only lost $512 million and linear dropped by 23% ($1.89 billion). No new major growth initiatives were announced but Disney will look to stem DTC losses through Disney+ price rises and a password sharing crackdown.

    Major segment resets are looming as Disney looks for new partners for ESPN and possibly buyers for its legacy TV business, ABC.

    A difficult remainder of the year will be prolonged if the Hollywood talent unions strike into the autumn and beyond, while Bob Iger stays on as CEO through 2026.

    Access report

  • Farewell to Peak TV Disney: Q2 2023 results

    15 May 2023

    Disney is deep into a race to improve direct-to-consumer (DTC) earnings faster than linear TV profitability falls. It will be a close call.

    To get through the profit-depressed transition, Disney is doubling down on digital. Bob Iger now appears decided to keep Hulu, and will reduce content spending on long-term IP creation.

    In Europe, Disney’s battle plan is one step behind, with significant price increases yet to be tried, cuts to be implemented, and sales to broadcast partners just beginning.

    Access report