Disney's Challenging Quarter: Has the Magic Gone?
$Disney (DIS.US)$ Disney had a challenging third quarter, highlighted by the declining Disney+ subscriptions and significant restructuring expenses. The number of Disney+ subscribers went down by 7.4% to 146.1 million, a sharper drop than expected. A huge chunk of the decline happened in Disney+ Hotstar, which experienced a 24% user drop after losing rights to the Indian Premier League cricket matches.
![Disney's Challenging Quarter: Has the Magic Gone?](https://sgsnsimg.moomoo.com/101775156/editor_image/5b6c40cb416738c6be8df533adaa1bb9.png/bigmoo)
To counter these falling numbers, Disney plans to increase prices for its ad-free streaming version in October and also intends to curb password sharing, similar to Netflix's strategy earlier this year.
Despite these challenges, Disney's parks and experiences sector had some positive outlook, reporting a 13% revenue growth to $8.3 billion for the quarter. However, domestic parks, especially Walt Disney World in Florida, observed a dip in attendance and hotel bookings.
Disney's return to the big screen has been mixed. Films like "Avatar: The Way of Water" and "Guardians of the Galaxy: Vol. 3" performed well, earning over $3 billion worldwide. Conversely, other big-budget films like Pixar’s “Elemental” and “Indiana Jones and the Dial of Destiny” didn't resonate as well with global audiences.
![Disney's Challenging Quarter: Has the Magic Gone?](https://sgsnsimg.moomoo.com/101775156/editor_image/47c1e97645af3c198d8723a5415e2f80.png/bigmoo)
CEO Bob Iger remains optimistic, emphasizing the interconnectedness of their film studios, parks, and streaming services. Still, he admitted some recent movies haven't met expectations, vowing to improve film quality. On another front, Disney is considering a complete takeover of Hulu, with negotiations anticipated to start at $9 billion.
![Disney's Challenging Quarter: Has the Magic Gone?](https://sgsnsimg.moomoo.com/101775156/editor_image/be0794439c6a3dd1b79c79860b91581b.png/bigmoo)
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