According to Yahoo! Finance, entertainment stocks collectively lost $500 billion in 2022. Indeed, 2023 has continued to pile pressure on companies such as Walt Disney (NYSE: DIS), (NASDAQ: NFLX), and Warner Bros. Discovery (NASDAQ: WBD) as their valuations have continued to underwhelm. However, each of the three companies are executing strategies that could yet lead to long-term growth.

While Disney+ is one of the most popular streaming services in the world, the platform has never made money for Walt Disney. Indeed, in the fourth quarter of fiscal 2022, Walt Disney's direct-to-consumer (DTC) streaming unit lost approximately $1.5 billion -- more than twice as much as the same period a year before.

Bob Iger returned as Walt Disney's CEO in November 2022, and quickly made clear his intention to find efficiencies at DTC. The executive has said that Disney will focus on programming that drives streaming subscriptions, while also working to bring down overall content costs by $3 billion. The approach forms the backbone of Walt Disney's plan to make DTC profitable by the end of fiscal 2024.

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Source Fool.com