Even just a few years ago, many of us naively believed that streaming services acted as an ever-growing library of content that we could return to and watch shows at any time. And last year, Warner Bros. Discovery launched its first big shot with The Great Write-Down. Disney followed up on this last month, saying it has more planned in the future. variety report.
Disney is expected to incur $1.5 billion in content impairment charges following the removal of shows and movies like Willow, Y: The Last Man, Dollface and The Mysterious Benedict Society. and the company would be able to remove that amount from its tax sheet. That’s a non-negligible number, equivalent to several Marvel movies in savings. As a result, Disney is reportedly continuing to review content on both Disney+ and Hulu, saying, “At this time, we expect additional production content to be released to DTC and other platforms, primarily during the remainder of the third fiscal quarter. We expect it to be removed from the This could represent an additional approximately $400 million in impairment charges related to produced content, which primarily means scripted television and films.
Since the early days when Netflix created streaming content for its platform, the streaming service has continued to grow and expand its library. However, growth has slowed significantly as so many people have joined the streaming service.not so much new Customer as it used to be. It’s important to retain existing users and bring back users who have switched to other services.
A more surefire way to widen the gap between spending and revenue is to focus on finding ways to reduce back-end costs. Shelving content that Disney perceives as costing more than it’s worth means Disney doesn’t have to pay the rest of the money to its actors and screenwriters (the latter in particular is currently on strike for better pay), and It means you don’t have to. Pay license fees to external parties.
“We are confident that we are on the right track for the long-term profitability of streaming,” said Disney CEO Bob Iger at Disney’s recent earnings call. We will continue to streamline the amount of content we produce and content.” I’m spending Iger also expects Disney to increase the price of its Disney+ service “to better reflect the value of the content it offers.”
We expect to see more news of this kind coming not only from Warner Bros. Discovery and Disney, but also from companies like Amazon Prime Video and Netflix, and newcomers like Peacock and Paramount+ in the coming years. Choices are also expected to emerge in pursuit of the sustainable interests they face. a slowdown in growth.
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