The Disney+ service had million-dollar losses this week that will affect the creation of original content, since they will stop producing at the rate at which they were doing it and will eliminate content from their catalog that has already been released.
The streaming giant also lost subscribers again for the second consecutive quarter, so they are looking to save between 1.5 and 1.8 billion dollars. The financial director did not specify what content will be affected or what will happen to them, although it did specify that the Hulu catalog will also be integrated into Disney+.
Christine McCarthy, Disney’s chief financial officer, reported that during the second quarter of 2023 they have had significant expenses as part of their restructuring following the return of Bob Iger to the presidency of Disney. Therefore, they have decided to change their strategy.
“We have realized that we create a lot of content that does not necessarily drive growth,” Iger also suggests in this regard. The Disney boss assured that the company will focus on being more “surgical” in its content instead of spending money promoting things that are not going to have a real impact on the accounts.
The company reportedly spent $150 million, largely related to severance pay for the massive layoffs that have occurred in recent months. In addition, Disney is expected to face new expenses of up to $180 million, most of which is expected in the third quarter.
