Disney's Streaming Business Is Improving, but Now This Is Weighing on Its Bottom Line
A big risk with the stock of Walt Disney (NYSE: DIS) these days is that the company's streaming service, Disney+, remains unprofitable. Management did raise monthly subscription fees on it, and there are encouraging signs that the direct-to-consumer (DTC) segment is on the right track. Unfortunately, its media and entertainment business remains sluggish and is facing multiple headwinds.
When Disney reported its latest earnings numbers earlier this month, it showed good growth in its parks and experiences segment. Second-quarter operating income was strong, rising 23% year over year to nearly $2.2 billion for the period ending April 1. The problem, however, is that its media and entertainment business, which includes its Disney+ streaming service and its content creation, continues to drag overall operating income down.
Source Fool.com
