Disney’s entertainment segment has experienced a letdown in the most recent quarter. The financial outcomes fell short compared to the previous year, primarily due to lower earnings from theatrical releases than those from last year.
The films The Fantastic Four: First Steps and Freakier Friday were released in theaters last summer. Their box office returns were lower than those of last year’s Disney projects, Inside Out 2 and Deadpool & Wolverine. Consequently, profits dipped by 5 percent, totaling 3.5 billion dollars (3 billion euros).
For the overall entertainment sector of Disney, the figures were even more disappointing, showing a drop of 35 percent. Besides the lackluster results of the cinema releases, this decline was attributed to reduced advertising revenue from Disney’s television networks. A year before, the advertisement campaigns for the U.S. presidential elections significantly boosted income.
Conversely, Disney’s streaming platforms, including Disney+, reported profitability. Last month, the corporation revealed plans to raise subscription fees.
Disney anticipates a rebound in profits during the upcoming fiscal year, which commenced at the end of September. However, achieving this goal remains challenging due to the substantial expenses associated with producing new films. The company is optimistic about recovering costs with the forthcoming sequels Zootopia 2 and Avatar: Fire and Ash.