Disney removed dozens of shows from its streaming platform last month, a move that has allowed the company to write off US$1.5 billion, which will impact its fiscal third quarter.
In an SEC filing over the weekend, Disney flagged the A$2.25 billion write-down, and noting that more content will be removed soon.
“The Company is continuing its review and currently anticipates additional produced content will be removed from its [direct-to-consumer] and other platforms, largely during the remainder of its third fiscal quarter,” the filing reads.
“As a result, the Company currently estimates it may incur further impairment charges of up to approximately $0.4 billion [A$600 million] related to produced content.
Operating income from the company’s linear TV segment, including ESPN and the Disney Channel fell by 35 per cent year-on-year during the most recent quarter, fast-tracking the company’s plans to make streaming profitable.
The company aims to make Disney+ profitable by the end of its next fiscal year, ending September 2024.
In addition, CEO Bob Iger has signalled plans to reduce spend on original programming across the entire company by A$4.5 billion this year alone.
