Disney once again surpassed Wall Street’s expectations for streaming last quarter, adding 7.9 million Disney+ subscribers and suggesting the company could position itself to become the leader in streaming, which has become the peak of streaming.
While Wall Street expectations for Disney+ varied, midpoint expectations ranged from 4.5 million to 5 million.
Disney reported revenue of $19.2 billion and revenue of $3.7 billion, with earnings of $1.08 per share. Wall Street’s expectations were for $20.1 billion in revenue, $3.3 billion in operating income and $1.17 billion in EPS. The omission of the EPS may be due to a change in tax rules, which raised the company’s effective tax rate from 8.8% a year ago to 45.8% last quarter. Disney also suffered a $1 billion hit related to early termination of licensing deals for content it could use on its own streaming service. Disney didn’t specify what the schedule was, but it’s likely to be an exit deal from Netflix, including the series from Marvel’s streaming services.
Despite Netflix’s lockdown in the last quarter, the streaming business remains the segment where Wall Street is getting the most attention, and when the company resumed its space efforts on Wednesday, Disney+ added 7.9 million subscribers in the quarter. , reaching 137 million. all. Hulu added 300,000 subscribers to reach 45.6 million subscribers (Black Friday stock may have seen some growth in the last quarter), while ESPN+ added 1 million subscribers to 22.3 million.
Disney CFO Christine McCarthy also suggests that Disney+ subscriber growth could slow in the coming quarters. “It is worth mentioning that we had stronger than if expected First medium, medium “This year,” McCarthy said on a quarterly earnings call, adding that some of the markets expected to open in the third quarter are in Eastern Europe, including Poland, which could be affected by the war. However, the list of strongest content is expected to continue to grow on Disney+ in the second half of the year.
Disney’s entertainment and media distribution division, which includes streaming, had revenue of $13.5 billion in the quarter, up 9% from a year earlier. Streaming led the way, with a 23% increase in revenue to $4.9 billion. Linear networks increased 5% to $7.1 billion. The Oscars helped boost ABC’s ad revenue up from a year earlier, “partly offset by a smaller audience and, to a lesser extent, fewer units delivered,” the company said.
Meanwhile, Disney’s Parks, Experiences and Consumer Products Division had revenue of $6.6 billion, up 100% from a year ago when the impact of COVID-19 was still being widely felt across the globe. world.
The company also received a $195 million impairment charge related to a Disney channel in Russia. The company said it will take steps to leave the country after invading neighboring Ukraine.
Disney’s latest earnings report comes at a critical time for the entertainment giant and the video streaming world at large.
The entire streaming business has been under pressure since Netflix sharply reduced its revenue numbers for the last quarter and released lower forecasts for the coming quarters. Netflix also announced plans to eliminate password sharing and increase advertising levels, signaling that the company believes growth in its adult markets could peak.
But Disney is growing, with Disney+ ad support on the horizon, and the sheer abundance of shows will likely allow the company to raise prices to an unspecified level while adding less expensive options with ad support.
“This will allow us to adjust our pricing while maintaining our strong value position,” Disney Chief Executive Bob Chapek said in a statement. “We believe that great content will increase our customers and that larger customers will increase profitability.
As for the level of advertising support, Chapek told TV Upfronts next week: “We expect a very positive response from advertisers in general. They’ve been asking for it for years.”
Since the beginning of the year, Disney has been at the center of a major political controversy over the so-called Florida. “Don’t say gay” on the bill. After initially refusing to take a stand on the project, the company publicly backed off after beating up employees. However, this public outcry prompted Florida’s Republican legislature and governor to retaliate and abolish Disney’s special privileges around the Reed Creek Improvement, a Disney-controlled pseudo-governmental entity that gives it flexibility to oppose the world.
Meanwhile, Disney’s theme park business faces new challenges as the China shutdown and general market volatility threaten a profitable split, although US attendance appears to be on the rise, with solid results in the last quarter.
And in the theatrical business, a strong showing. Doctor Strange 2 You can stop any future day and date plans.
As for the future of Disney’s line-of-sight TV channels like ESPN: “Linear networks are moneymakers,” Chapek said, adding that “hesitating to walk away from them too quickly is a cash flow situation.”
However, Chapek has fulfilled a future where ESPN is available directly to consumers.
“At some point, when it’s good for our shareholders, we can fill it up,” he said, noting that when they decide, “it’s going to be the best deal for supercar fans and it’s really just ESPN.” .” Who can do it.
Source: Hollywood Reporter

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.