Disney to announce earnings amid Disney+ concerns
Mr. Chapek, who succeeded Robert A. Iger in 2020, has indicated that he is ready to think outside the box. “What we’ve seen time and time again is that the elasticity of Disney and its brand is way beyond what we could have attributed to it,” Mr. Chapek said on the conference call. He added that more than half of Disney+ subscribers don’t have children.
At the same time, Mr. Chapek pointed to the recent success of the animated musical “Encanto,” which arrived on Disney+ just before the end of the quarter. “The Book of Boba Fett,” a limited series set in the “Star Wars” universe, also began rolling out to Disney+ in December, with the company hoping to build on the momentum of “The Mandalorian,” one of the most successful services. . Another “Star Wars” series, “Obi-Wan Kenobi,” will arrive on May 25.
Disney said it recorded $4.7 billion in total streaming revenue in the last quarter, up 34% from a year earlier, in part because Hulu, which Disney owns with Comcast, increased subscription prices. Still, Disney’s streaming division lost about $600 million, about 27% more than a year earlier, on costs that included content production, marketing and technology infrastructure.
Disney Parks, Experiences and Products operating profit totaled $2.45 billion, compared with a loss of $119 million a year earlier when some Disney properties were closed due to the pandemic and d Others, including Walt Disney World, capped daily attendance. Disney cited the return of its cruise line, albeit with limited capacity, as another reason for the division’s rebound.
Higher prices at Disney parks have also helped, as has the introduction of a digital tool, Genie+, which allows park visitors to significantly reduce wait times. It costs $15 at Disney World in Florida and $20 at Disneyland in California.
“We were blown away,” Mr. Chapek said of the Genie+ purchases. (Disney World’s old line-skipping system was free.)
Christine M. McCarthy, Disney’s chief financial officer, noted that attendance was strong at Disney World even though “we have yet to see the return of our international guests.” Foreign visitors accounted for about 20% of resort attendance before the pandemic.