2023-08-09 20:28:04
By Le Figaro with AFP
Posted 1 hour ago, Updated 33 minutes ago
The Disney+ logo. GIVEN RUVIC / REUTERS
The entertainment giant, which is facing a historic strike by screenwriters and actors, has however achieved an increase in turnover.
Disney saw the number of subscribers to its Disney+ streaming platform decline for the third consecutive quarter, but promised an upturn during the summer, when the American group faces a historic strike by screenwriters and actors.
The streaming service fell from 157.8 million at the end of March to 146.1 million at the end of June, mainly due to the Indian market, following the loss of the rights to broadcast the national cricket championship. In all, the entertainment giant achieved a turnover up slightly but slightly below analysts’ expectations, at 22.3 billion dollars over the period, according to its results press release published on Wednesday.
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24% drop in India
From the end of September to the end of June, Disney+ lost 18 million subscribers in all. The fall in the spring is mainly linked to a 24% drop between March and June in India, where the version of the service, called Hotstar, weighs almost a third of the world total. But the platform also saw a slight decline of 1% in North America, the second in a row. However, it seeks to remain positive, assuring to expect a rebound in the number of subscribers during the current quarter, both in its domestic market and internationally.
In financial terms, the streaming activity remains loss-making, but it continued to reduce its operating losses over the quarter, to 512 million dollars instead of 1 billion last year at the same period. Disney also saw its revenue for films and programs sold to cinemas and television stations decrease, to $6.7 billion. Only revenue from amusement parks, cruises and derivative products increased substantially, by 13%, to 8.3 billion dollars. The activity generated an operating profit of 2.4 billion dollars (+11%).
“Unrealistic”
Under the leadership of boss Bob Iger, the Enchanted Kingdom has undertaken to save money this year, in particular by eliminating 7,000 jobs and reducing content production. Recalled to the helm at the end of 2022, Bob Iger, 72, had already led the company from 2005 to 2020. The group’s board of directors voted unanimously in July to extend his contract until the end of 2026.
But the iconic leader has waned in popularity in recent months. He faces a historic Hollywood strike: the actors joined the screenwriters in mid-July to demand an increase in their remuneration, at half mast in the era of streaming. They also want to obtain guarantees on the use of artificial intelligence (AI), to prevent studios from using it to generate scripts or clone their voice and image.
Requirements “unrealistic“, according to Bob Iger, booed in demonstrations from Los Angeles to New York. “Nothing is more important to this company than its relationship with the creative community, actors, writers, directors and producers.he said on a conference call on Wednesday. “I have deep respect for everyone who is vital to the extraordinary creative engine that powers this group and our industry.».
In Florida, Disney is in the midst of a battle with Governor Ron DeSantis. This personality of the American hard right, fighting against a supposed culture “wokein February ended the special status the company had enjoyed in its state since the 1960s. Florida.
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