Disney posted stronger-than-anticipated results for Q1, particularly in its streaming division. Disney’s Q1 earnings report showed its streaming business generating a profit for the first time in the company’s history, with Disney+ and Hulu together earning a profit of $47 million while ESPN+ lost $18 million. This is a massive improvement compared to Q1 2023 when Disney+ and Hulu lost $587 million and ESPN+ lost $659 million.
The increase in revenue is tied to a series of subscription price hikes Disney rolled out throughout the year, while still being able to bring on new subscribers. Disney CEO Bob Iger expressed confidence in the trajectory of the company’s streaming business, expecting the division to produce an annual profit by the third quarter of 2024.
During the earnings call with investors, Iger also commented on the future of Marvel Cinematic Universe, which has struggled with a series of embarrassing box office flops including ANTMAN AND THE WASP: QUANTUMANIA and THE MARVELS. Iger admitted last year’s failed MCU releases were “a vestige of a desire in the past to increase volume” of new titles. Iger indicated that his company’s new approach for the MCU will be to focus on creating “two good films” per year, which is roughly one-half the output in recent years.
While this may be a tough pill for exhibitors to swallow, it has become necessary. The MCU brand had become oversaturated by rapid-fire releases with uneven financial success, and a decline in audience interest. By limiting the number of new titles and improving quality, the MCU may be able to regain a measure of its past success. However, exhibitors are left wondering what other genres will step in to fill the void left by Marvel’s retrenchment.
