The Walt Disney Company has reported that it expects its streaming division to improve margins and generate over a billion dollars in profits throughout this year. According to Johnston, Disney's chief financial officer, "the streaming business is performing very well." However, other sectors of the company have faced challenges, with a decline in profits from television networks and revenues from theme parks that have barely changed.
The reported quarter has been considered a good start for Disney's fiscal year, and this was expressed by Bob Iger, the company's CEO. Although Disney's shares fell slightly in New York, following the general market trend after the results of some major tech companies, the Disney+ streaming service has continued to attract subscribers, despite the price increase.
During the quarter, Disney raised its streaming service prices by up to 25%, contributing to a profit increase compared to the previous year. Despite a slight decrease in the number of Disney+ subscribers, the company is confident in continuing to grow its user base. The CFO attributes this decrease to seasonal factors and not to the price increase.
Disney's first-quarter earnings have surpassed analysts' estimates, largely thanks to the box office success of "Moana 2" and the growth of revenue from streaming services. This quarter has been particularly challenging for Disney's parks, although the company's total revenues have experienced a 5% increase.
Disney is seeing the benefits of years of significant investment, especially in streaming services and the company's film studio. They expect to continue expanding their offerings with future releases, such as a new direct-to-consumer ESPN product.
Regarding Disney+ and Hulu subscriptions, Disney has expressed satisfaction with current numbers, despite expectations of a decline following the price increase. The company is optimistic about the future of the streaming business and expects it to remain a key driver of its growth.
