Disney Is Spending a Fortune on Streaming Content, but Is It Enough?
Walt Disney's (NYSE: DIS) streaming businesses finally reduced their operating losses last quarter. But it didn't happen for the reason you might be thinking. Content costs -- the cost of producing or licensing the films and shows for its various platforms -- actually grew again during the quarter ended in December. Indeed, these costs actually grew more than Disney's streaming revenue did, seemingly in conflict with the company's plans to curb spending.
So how'd the company make net progress toward profitability for the quarter in question? It dramatically cut other operating expenses. It's a decision, however, that just might come back to haunt Walt Disney's long-term streaming ambitions.
As the old saying goes, a picture is worth a thousand words.
Source Fool.com
