When You Wish Upon a Stream: Disney's Tale of Mixed Results
Once upon a time, in the enchanted land of Walt Disney (NYSE: DIS), the Disney+ streaming business was full of pixie dust and potential. But as they say, all magic comes with a price. Disney's 2023 second-quarter report revealed some hiccups in its direct-to-consumer (DTC) segment, where Disney keeps its portfolio of video-streaming services. So while the House of Mouse did see some growth, it wasn't all smooth sailing.
Disney's Q2 2023 DTC results showed some mixed signals. The good news is that the company managed to boost its revenue from subscribers, particularly in the United States, where the domestic Disney+ average revenue per subscriber (ARPU) rose from $6.32 to $7.14. Moreover, the theme parks and resorts segment also enjoyed a 17% year-over-year sales jump, contributing to the overall revenue increase of 13%.
However, the company faced some challenges in growing its subscriber base, with Disney+ core subscribers experiencing only modest growth of over 600,000 net additions. Additionally, the average revenue per subscriber for some international streaming services took a hit, with Disney+ Hotstar ARPU dropping from $0.76 to $0.59.
Source Fool.com
