Is Disney's Big Gamble About to Pay Off?

Walt Disney (NYSE: DIS) is arguably the world's most recognizable entertainment company. Despite its size, industry-leading position, diversified media channels, cruise ships, and more, Disney is a very risk-tolerant company. In fact, risk-taking has been a winning move for Disney throughout its history.

Disney's latest gamble is investing heavily in content and expanding its direct-to-consumer (DTC) offerings through Disney+, ESPN+, and Hulu. These three services racked up a staggering $6.74 billion in programming and production costs alone in the first half of fiscal 2022. And Disney expects total fiscal 2022 content spending to be $32 billion.

The DTC segment continues to lose money. And investing in DTC is one of the main reasons Disney can't afford to reinstate its dividend yet.

Source Fool.com