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Disney Is Now Taking A BIG Loss With Recent Changes

Disney Is Now Taking A BIG Loss With Recent Changes

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With recent reshuffling at Disney, they are now taking a big loss. Find out what this means for the company in the coming months.

Big Changes for Disney

Credit: Kenny the Pirate

Disney+ has been streaming for 3 years now. This streaming platform appeared strong at first, but it appears to be showing a few cracks over the past year. Discrepancies with Disney+ earnings were one of the deciding factors for the quick removal of former Disney CEO, Bob Chapek.

This has recently led to a lawsuit including Chapek and several others for the misinformation of the financial success of Disney+. After Bob Iger returned as CEO, Disney+ did not appear to be the giant that it once seemed.

Credit: The Walt Disney Company

During the First Quarter Earnings Call, Iger shared Disney+ subscription had taken a loss. It appears this downward slope continues for the streaming service. This continued into the Second Quarter Earnings Call.

For the Second Quarter Earnings, Disney+ lost 4 million subscribers – primarily overseas. Nevertheless, big measures are now being taken for Disney+. The company’s response was surprising as Disney CFO, Christine McCarthy shared that they would be removing content from Disney+. Read more about this HERE.

Financial Loss

Credit: KtP

As promised, Disney started removing original programming that first appeared on Disney+ when it first launched in 2019. You can see a whole list of content to be removed HERE and those titles already removed HERE.

Not only is this disappointing to Disney+ subscribers, but this also comes at a cost. The removal of content comes with a $1.5 billion impairment charge according to a recent SEC filing. This impairment charge will affect the Third Quarter Earnings of the Walt Disney Company.

Credit: KtP

The cuts do not stop here because the Walt Disney Company plans to continue to make cuts to the Disney+ streaming platform and this could potentially lead to an impairment charge of up to $0.4 billion.

This also leads to the termination of license agreements. “In addition, the Company may terminate certain license agreements for the right to use content on its platforms, which would result in the removal of licensed content from its platforms and lead to impairment and/or contract termination charges as well as cash payments.”

The removal of content comes with a $1.5 billion impairment charge for the Walt Disney Company.

“The Company currently expects that any such charges and payments related to licensed content would be meaningfully less than the impairment charges related to produced content.

In the end, it appears that the Walt Disney Company sees a greater gain in losing this original content even with this impairment charge.

How Does This Affect Disney Fans

Photo: Disney

In the meantime, how does this affect the Disney fans who are also Disney+ subscribers? Overall the removed content may or may not affect Disney+ subscribers based on their streaming interests.

What will likely affect all Disney+ subscribers is the promise by the Walt Disney Company to increase pricing tiers. Disney+ will increase the price of the ad-free subscription tier.

Currently, this price is $11 a month or $110 for a year.  By the end of the calendar year, this price will increase according to Iger. Content removed, less content to be produced, and higher prices for the ad-free tier are ways the Walt Disney Company hopes to bring financial success to Disney+

By the end of the calendar year, this price will increase for the ad-free subscription tier according to Iger.

What do you think of this big change? Are you a Disney+ subscriber? Does this affect your plans to subscribe to Disney+? Share your thoughts with us and share this with a fellow Disney pal.

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Sunday 4th of June 2023

I agree with you. Being straight is not pushed at anyone. We don't have parades, or special days or weeks given for being "straight". Which is stupid to label it.

Desiree Heller

Sunday 4th of June 2023

Instead of firing all these people, after they say how much the care about people, they should cut the big execs salaries, bonuses and bonus compensation they receive. It is ridiculous what Chapek got from being fired!!! When you're fired, you lose all the perks. They cut content from Disney + and limit time/cast members/activities in the parks/hotels, yet raise the price. The same thing that got Chapek fired. Is this what Iger wants? As he has not found a decent replacement. As a shareholder I see my stock value continue to drop.


Sunday 4th of June 2023

Disney's loss with Disney+ is a result of two mistakes: 1) raising prices 2) attempting to "queer" all their content

Parents don't want that crap shoved down their kids' throats, but Disney refuses to learn from failures such as Lightyear and Strange World. Instead, they write off those losses for other reasons such as "unclear messaging" on the background of Lightyear. No - parents don't want their young children exposed to deviant sexuality, just like they don't want their young girls greeted at Bibbidi Bobbidi Boutique by a man in a dress claiming to be a Fairy Godmother's Apprentice. Disney needs to wake up and drop the woke.


Saturday 3rd of June 2023

Disney is losing subscribers for two reasons: increasing prices and "queering" their content. Parents don't want that crap pushed on their children; Disney just refuses to learn from the failures of movies like Lightyear and Strange World.


Saturday 3rd of June 2023

See how many subscribers leave when they up the price again. Wait and see disney you think you're losing money now,look out!!

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