Demand for streaming service helps narrow Disney’s losses
Disney’s nascent streaming platform has helped to offset some of the impact of the pandemic on its wider entertainment business.
The House of Mouse beat analysts’ expectations posting $16.25bn in overall revenue down from $20.86bn in the previous quarter.
Disney’s parks, experiences and products segment have been closed since the second quarter and predicts additional costs to comply with regulations will total $1bn this year.
Operating loss from the parks and consumer products business was $119m, down from a profit of $2.52bn a year earlier.
The direct-to-consumer and international segment, which includes Disney’s streaming service, suffered a $466m, down from a $1.1bn loss in the previous quarter.
As a result its attention has shifted to its streaming service which now boasts 94.9m subscribers as of 2 January, although it still lags behind Netflix’s 200m.
“We believe the strategic actions we’re taking to transform our company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146m total paid subscriptions across our streaming services at the end of the quarter,” chief executive Bob Chapek said.
The streaming service will hike subscription fees to £7.99 per month in March as it looks to further stem losses.