During Disney’s earnings call, Iger mentioned that they have been evaluating markets around the world to determine which ones will help turn Disney+ into a profitable business. This means that some markets may receive less investment in local programming while still maintaining the service, while others may not have the service at all. There will also be high-potential markets where Disney will invest in local programming, marketing, and comprehensive content.
This news has significant implications for those living outside of the United States. Some countries may experience a reduction in original content, while others may lose access to Disney+ altogether. It is possible that Disney is exploring the option of selling rights to its content to larger streaming services in unprofitable areas as a way to increase profitability. By cutting back on original content in certain countries, Disney can minimize losses while still offering the service.
Disney’s streaming business has been facing financial challenges. In the fiscal third quarter, the direct-to-consumer business reported an operating loss of $512 million, an improvement compared to the $1.06 billion loss from the previous year. Disney aims to make Disney+ profitable in the near future, with reports suggesting that it could achieve profitability by 2024 or 2025. Bob Iger is committed to making Disney+ profitable as soon as possible.
At this point, Disney has not disclosed which countries are being considered for potential shutdown or cutbacks.
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