Take a seat folks, Disney just dropped some HUGE news and we’ve got it all for you right here!
©Disney
On February 7th, 2024, Disney held its earnings call (and released its earnings report) for the first quarter of fiscal year 2024. That gave us some important updates on Disney’s financial situation in its theme parks, its streaming services, and more. So just how is Disney doing right now? Are things looking up at the Mouse House or is there bad news in store for 2024? Let’s dive in and break it all down!
Overall Financial Results
First, in terms of overall financial results, Disney shared the following:
$23.5 billion in first-quarter revenue which was similar to the prior year’s. Iger shared that their strong performance in this quarter “demonstrates we have turned the corner and entered a new era.” The company shared that they are “achieving significant cost reductions” throughout their businesses. They have saved over $500 million in selling, general, and administrative expenses in the first quarter.
The next dividend will be paid in July and will be 50% higher than the one paid in January. Additionally, there will be a share buyback for the first time since Fiscal Year 2018 — the target is $3 billion this fiscal year.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Saving $500 million this quarter keeps them on track to save the $7.5 billion target by the end of this fiscal year. The Board of Directors has approved a share repurchase program that became effective February 7th, 2024 with a planned target of $3 billion in repurchases. There was also a 50% increase in dividends declared on February 7th, now at $0.45 per share which will be paid out to shareholders on July 25th, 2024.
Disney+
Streaming is a HUGE priority for the Walt Disney Company (and one CEO Bob Iger has previously called his number one priority). At the end of the 2023 fiscal year, Disney+ Core had a total of 112.6 million subscribers, while Disney+ Hotstar had 37.6 million.
As of the latest update (for the first quarter of fiscal year 2024), the numbers are as follows:
Disney+ subscribers decreased by 1.3 million which was in line with the company’s expectations. However, Disney is projecting a rebound of 5.5 to 6 million subscribers for the second quarter.
Disney has confidence in Disney+ subscriber growth based on what they’ve seen with other streaming services when they cracked down on password and account sharing.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Disney+ subscribers suspected of “improper sharing” will be prompted to create new accounts.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
When asked about the pricing for account sharing on Disney+, Johnston declined to share a specific price. Accounts suspected of sharing should expect to get communication this summer which will push those sharing to purchase their own accounts.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
©Disney
Next month, Disney+ will become the EXCLUSIVE home of Taylor Swift’s ‘The Eras Tour: Taylor’s Version’
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
We also learned that Taylor Swift’s Eras Tour movie will be premiering on Disney+ on March 15th of this year! The Disney+ version of the movie will feature Cardigan and four more acoustic songs that were not in the theatrical release.
When Taylor Swift’s ‘The Eras Tour: Taylor’s Version’ debuts on Disney+ on March 15th, it will include ‘Cardigan’ as well as FOUR additional acoustic songs not in the theatrical release of the concert.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
If you’re a fan of the Percy Jackson and the Olympians show on Disney+, then you’ll be happy to know that it has been picked up for a second season!
Percy Jackson and the Olympians has been picked up for a second season.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Direct-to-Consumer
What about revenue and loss for Disney’s direct-to-consumer business as a whole (Disney+, Disney+ Hotstar, and Hulu)? Here’s how things look there:
Entertainment Q1 operating income more than doubled thanks to direct-to-consumer revenue.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Overall, in streaming, the company had a loss of $138 million this quarter. However, Iger commented that across the board, the company saw success and there has been a dramatic improvement in streaming. The loss this quarter is improved from the $300 million the previous quarter. Disney is projecting to reach profitability by the last quarter of fiscal year 2024.
The number of Hulu subscribers increased by 1.2 million from the previous quarter.
It’s finally here!
Hulu subscribers increased by 1.2 million in Q1 while Disney+ subscribers decreased by 1.3 million in alignment with expectations.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Disney and Hulu have been working on a one-app experience (the beta test of which was already released), and cracking down on password sharing. Plus, we’ve seen Disney+ included with Apple Vision Pro, new seasons of popular shows announced for Disney+, and the cancelation of certain shows. It seems that a lot of things truly are changing in the streaming space for Disney. Whether all of it will ultimately lead to Disney’s goal of making Disney+ profitable by the end of fiscal year 2024 remains to be seen, but it’s something we’ll be watching carefully.
Next month, Gray’s Anatomy will be EXCLUSIVELY on Hulu.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Theme Park Updates
Disney has some BIG plans for its theme parks. We’ve seen announcements made about $1.9 BILLION expansion plans for Disneyland, “Blue Sky” ideas for expansions at Magic Kingdom, potential re-theming ideas for DinoLand U.S.A. at Disney’s Animal Kingdom, and a promise to invest $60 BILLION in Disney Experiences over the next 10 years.
But that doesn’t mean things at the parks are all going smoothly. Recent financial reports have seen disappointing results reported for Disney’s Florida theme parks. So what’s happening now?
EPCOT
Iger shared that during this quarter every park has been profitable. The global parks have seen great success. He also mentioned that compared to how the parks were operating before the pandemic, the parks have been doing twice as well.
Every Disney Park was profitable in Q1.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
The company hit an all-time record in revenue, operating income, and operating margin in their Experiences department in the first quarter. In terms of expansions and updates to the parks, Iger shared that every park location will have new things brought to them! 70% of the $60 billion will be used for “incremental capacity-expanding” in the parks.
CEO Bob Iger has been asked about the potential opening of a 5th park in Walt Disney World.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Movies
As we’re only a little time after the end of the SAG/AFTRA strikes, Iger shared that the next quarter for movies will be relatively quiet. He announced today that a Moana 2 movie is in the works and set to be released in November! Other movies that are also in the works include Frozen 3, a new Toy Story film, and the Star Wars movie The Mandalorian and Grogu. These movies are for the future, 2026, and beyond.
Journey of Water, Inspired by Moana
In 2025, fans can expect ‘Zootopia 2’, ‘Avatar 3’, and other theatrical releases. Come 2026 and beyond, Disney is looking to the release of ‘Frozen 3’, a new ‘Toy Story’ film and a new ‘Mandalorian’ movie.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
CEO Bob Iger states there will be a focus on sequels and franchises for Disney content moving forward citing ‘Toy Story 5’ and ‘Frozen 3’.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
In November of THIS YEAR ‘Moana 2’ will release in theaters!
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
ESPN
According to Disney’s report, ESPN grew in both revenue and operating income and they have plans to continue building the digital sports platform. Most recently, a sports streaming platform was announced to launch this fall. No price for the new app was announced, but speculation was around $40 to $50. The company is still in talks for possible partners with the sports company.
CEO Bob Iger begins the call by recapping some big announcements: ESPN’s joint venture to create a NEW sports streaming network launching THIS FALL.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
ESPN will be offered as a standalone streaming option come Fall 2025. Former Alabama Head Coach Nick Saban will join as an on-air commentator to ESPN.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
In Fall 2025, the full suite of ESPN’s channels will be available to consumers in a digital format. This includes e-commerce features as well as ESPN Bet.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
ESPN increased its audience in calendar year 2023 and continues to raise ratings. The goal for ESPN is to increase reach to fans in the new streaming service by providing consumers more sports in one place.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
The standalone ESPN service will be available to bundle subscribers as has already been done with Hulu.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Gaming
Disney has recognized that gaming has become a very popular pastime, especially amongst certain generations. Because of this, they are now partnering with the creator of ‘Fortnite’, Epic Games to develop an ultimate gaming universe. This gaming universe would be attached to the Disney universe and be fully integrated with Fortnite.
Disney is acquiring a small equity stake in EPIC Games. This will allow a partnership that brings Disney franchises into the popular Fortnite game.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
With Disney’s partnership with EPIC Games, consumers may be able to create short form videos, engage in gameplay with Disney franchises and IP, and purchase both digital and physical goods according to CEO Bob Iger.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Data on how much time Millennials, Gen Z, and Gen Alpha spend on video games motivated Iger to further pursue integrating Disney into the video game market alongside EPIC Games. He explained that expressing IP in the video game world will mirror how IP is expressed in the parks.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
Disney Cruise Line
Iger commented slightly on the Disney Cruise Line, sharing that they currently have 5 ships with 3 more being built.
Iger: “We’re hard at work determining where to place our investments. You can assume that they’ll be placed all over including on the high seas where we’re building 3 new ships.” No more on timing other than they have things conceived and rolling out annually starting 2025.
— Disney Food Blog (@DisneyFoodBlog) February 7, 2024
We’re working on analyzing and sharing ALL of the news from Disney’s earnings call and report with you, so stay tuned for that.
Bob Iger has announced that his big priorities for 2024 are achieving significant profit streaming, building up ESPN into something even bigger, improving the output of their movie studios, and turbocharging growth in the Experiences business. We’ll be watching for updates on these things throughout the year to see just how Disney handles them. Be sure to check back with us for all the latest updates.
“Iger Is a Copy of Eisner” — Is Disney’s CEO Just Repeating History?
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Please let there be a second season of The Muppets Mayhem
Believe it when I see it. Tokyo Disneyland/Sea is and will continue to be the premier Disney destination. Prove me wrong, Iger.
It seems to me that Disney is doing well overall and far from all the haters insisting they’re “going broke for being woke”. As a parkgoer and pass holder, I’m more interested in park expansions and potential new parks. Fortunately, I am in a position that allows my family and I to continue visiting the parks often, even with the price increases. I just hope the expansions and new parks don’t take too long to be built.
All this profit and shares are still down big time. I’ve lost over 50% on my Disney stock in the last 3 years!
Toy Story 5? More Moana and Mermaid? Come on! So tired of stale sequels from outdated movies. They are nothing more than fillers, and a sorry excuse for not producing new films. Disappointed that new, original movies are not a priority this year, or since the pandemic Give us new, Disney worthy movies, please!!!
Disney World Parks had RECORD PROFITS last year. It doesn’t surprise me, when a company that offers something at NO CHARGE suddenly charges you for it that is 100 Percent Profit . SHAME ON YOU DISNEY FOR IMPLEMENTING GENIE PLUS AND INDIVIDUAL ATTRACTION
I feel like I just have to say this. Us average Disney fans are fans of the theme parks. We don’t really give a rip about Disney’s problems with finances, their streaming service, games, movies, etc. For us, it’s the theme parks and Disney has replaced guest experience with revenue enhancement and now treats their guests as ATM machines. What Disney fails to understand is that turning off guests by eliminating or charging for many things that used to be free, while raising prices at an accelerating rate on everything else, has consequences. They will not only lose loyal repeat guests at a steadily increasing rate, but these same guests will also abandon Disney Plus, not attend Disney movies, not play Disney games, and – most importantly given their financial results – not buy Disney stock. It all starts and ends with the theme park guest experience. And their poor stock performance reflects that. Yes, we still love Disney, though not as much as the past and more than in the future given the current trend in reducing the guest experience.
Only one thing can be said for the magnitude of the overall impact of the increase in profits…Disney will be raising prices in the parks, in short order!
I had read on an auto racing news site ESPN has it’s partnership. ESPN, FOX Sports, and Warner Bros Discovery have gone in 1/3 each to combine their sports properties for a new sports-centric streaming service.