Disney Misses Estimates on Streaming Costs, Ad Sales

The transcript discusses the financial impact of Hurricane Ian on Disney's parks, noting a significant drop in expected operating income. It explores inflationary pressures and consumer stress, which may affect Disney's business, particularly its parks and streaming services. The discussion shifts to Disney's streaming strategy, highlighting a price increase and the introduction of an ad-supported tier. The focus is on achieving profitability for Disney+ by 2024, with a shift from subscriber growth to improving unit economics and ARPU. Disney plans to manage content costs while maintaining subscriber momentum.

What were the two main factors that contributed to the lower than expected operating income for Disney's parks?

• Decreased tourism and higher interest rates

• Supply chain disruptions and tax increases

• Increased competition and labor strikes

• Hurricane Ian and inflationary pressures

How is Disney addressing potential economic stress on its streaming business?

• By offering free subscriptions

• By reducing content production

• By partnering with other streaming services

• By introducing an ad-supported tier

What is Disney's target year for achieving profitability in its streaming services?

• 2023

• 2024

• 2025

• 2026

What strategic shift has Disney made in its approach to streaming?

• Focusing solely on subscriber growth

• Prioritizing profitability over subscriber numbers

• Eliminating all advertising

• Expanding into new international markets

How much is Disney planning to spend on content next year?

• $20 billion

• $35 billion

• $25 billion

• $30 billion