Disney+ To Cost Disney $150 Million In Loss Revenue
During today’s Disney Quarterly Results Investor Call, Disney CEO Bob Iger was asked about how Disney will offset the loss of revenue from movies and TV shows that it would traditionally sell to companies like Netflix, in order to keep the content on Disney+.
Chief financial officer Christine McCarthy said they she is expecting to lose $150 million in revenue for the upcoming year, since they aren’t selling movies like Captain Marvel.
With the majority of this $150 million loss, will fall in the second half of the 2019 fiscal year, which ends on September 30th.
Throughout the conference call, Disney CEO Bob Iger emphasized that Disney is planning for the long haul and are adjusting how they currently sell movies and TV shows, to make Disney+ more profitable.
Bob Iger said:
“The investments we’re making on the technology side and increasing our incremental content are all designed for the long term. This is the equivalent of deploying capital to build out theme parks. This is a bet on the future our business. We are deploying our capital so that the long-term growth of this company is stronger than it would have been without these investments.”
While the loss of $150 million in the short term isn’t good for Disney, this movies and shows like Captain Marvel, Toy Story 4, Avengers: Endgame will be major selling points to get Disney+ subscribers.