Disney tried to follow suit with a number of big companies within the media and entertainment industries by telling their investors that their focus should be rooted in revenue and profits, and not in streaming subscriber growth.
It apparently didn’t go as initially planned.
Disney added 12.1 million Disney+ subscribers and 14.6 million total direct-to-consumer customers in its fiscal fourth quarter, according to CNBC, which toppled the numbers reported by Netflix for the quarter.
However, Disney shares fell 6% after hours.
“We expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate,” Disney Chief Executive Officer Bob Chapek said in a statement.
During Disney’s earnings conference call, Disney Chief Financial Officer Christine McCarthy said that operating losses will improve by about $200 million next quarter and will be even lower in the fiscal second quarter of 2023.
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