Disney continued to narrow its losses in its streaming business. In the latest quarter, the division, along with Netflix rival Disney+, was operationally in the red by $387 million, the entertainment giant announced on Wednesday.
In the same quarter last year, the region lost $1.47 billion. Disney+ gained seven million subscription customers within three months and now has 112.6 million users on its core offering.
In an interview shortly after the quarterly numbers were presented, Disney Chairman Bob Iger put his previous statements about a possible move away from classic TV business with cable channels like ABC into perspective.
When examining the business, they found interesting opportunities to cut costs, Iger said. People are also realizing how important the channels and their programming are to Disney’s streaming shows.
A few months ago, Iger said he could imagine the company’s future without linear television. Then the first purchase offers came to Disney.
Increase your savings goal
Iger now wants to cut annual costs by $7.5 billion. The previous savings target was $5.5 billion. In the fiscal year that just started, the group will spend a total of about $25 billion on content production, acting CFO Kevin Lansbury said on a conference call with analysts. That would be about $2 billion less than in the last fiscal year.
Disney increased the group’s sales in the fourth quarter ending in September by five percent to $21.24 billion. The bottom line is that profits rose to $694 million from $254 million a year ago. The stock temporarily rose about three percent in after-hours trading.
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