Disney+ is undergoing significant changes as Disney aims to boost profitability for its streaming services. Following the recent price hike for Disney Plus, Hulu, Hulu + Live TV, and ESPN+, Disney’s CEO Bob Iger revealed potential international adjustments, including potential shutdowns in certain countries.
During a recent earnings call, Iger outlined the company’s strategy, emphasizing the need to prioritize markets that contribute to turning the streaming business profitable. The approach involves varying levels of investment in local programming.
Some markets will experience reduced investment while maintaining the service, while others might see no service at all. In select “high-potential markets,” Disney plans to make substantial investments in local content, marketing, and comprehensive service.
The move signifies Disney’s recognition that not all global markets hold the same potential. The company’s focus on international profitability highlights the intention to establish strategic priorities.
This shift could have implications for viewers outside the United States. In certain regions, there may be a decrease in original content, while others could potentially lose access to Disney+ altogether.
Previously, Disney would sell content rights to different countries, but the current approach might involve selling shows to larger streaming platforms in less profitable areas. Trimming original content offerings in certain countries could contribute to reducing losses while maintaining service availability.
Disney’s direct-to-consumer business reported an operating loss of $512 million, an improvement compared to the $1.06 billion loss from the previous year’s fiscal third quarter. The company aims to achieve profitability for Disney+ soon, with reports suggesting this could occur by 2024 or 2025. Bob Iger is committed to expediting Disney+’s path to profitability.
As of now, specific countries that might face shutdowns or cutbacks have not been disclosed by Disney Plus. The proposed changes reflect Disney’s strategic reevaluation of its global streaming operations to ensure long-term financial success.
