Disney shares have fallen to a two-and-a-half-year low, after reporting a massive A$2.3 billion loss from its streaming division.

Walt Disney tumbled 11 per cent to the lowest since March 2020, as the company missed analysts’ forecasts for the four quarter.

The entertainment behemoth reported fourth quarter revenue of $31.35 billion, and full year revenue of A$128.7 billion, up 9 per cent and 23 per cent year-on-year, respectively.

Net income was A$252 million for the quarter, and A$4.96 billion for the year.

Disney+ added 12.1 million subscribers during the quarter, a result of the company’s ballooning costs in this sector.

CEO Bob Chapek (above) attempted to put a positive spin on the losses:

“The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful
shift in the economic climate.

“By realigning our costs and realising the benefits of price increases and our Disney+
ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future.”

Locally, Foxtel has seen massive subscriber growth for its streaming services.

Parent company News Corp released its financials yesterday, which showed revenue from its streaming division in Australia rose 6 per cent for the quarter.

Total Foxtel Group subscribers increased to 4.605 million, a record high, and up 16 per cent on the prior year.

Total streaming subscribers, including Kayo Sports, BINGE, Foxtel Now and Flash reached 2.947 million (2.807 million paid), up 34 per cent year-on-year.

Streaming now makes up 64 per cent of the group’s total subscriber base.