2 Must-See Charts That Show Why Disney Needs to Raise Prices
Walt Disney (NYSE: DIS) is raising prices for its Disney+ streaming service, again. It may not be a popular move with consumers who are trying to cut costs amid inflation, but it's a necessary one for the business. Using two charts, I'll show why the business is making a good decision by raising prices for Disney+, and why it may not necessarily hurt demand all that much.
Disney has two main operating segments -- the part that holds its theme park business, and the one related to media, including its Disney+ streaming service. It's the latter that is problematic. Through the first nine months of the year, the company's parks and experiences segment has been thriving, with sales of $24.8 billion rising by 17% year over year. And its operating income of $7.6 billion has jumped at even higher rate of 20%.
And while its media business hasn't been doing badly with revenue growing by 1%, its operating income is down a staggering 46%, reporting $1.9 billion less in profit this year compared to 2022.
Source Fool.com
