Disney is set to take a $1.5 billion write-down in its fiscal third quarter after the entertainment giant axed more than 30 Disney+ and Hulu shows last month to cut costs, according to a filing with the Securities and Exchange on Friday. Provision.
On May 26, Disney pulled the shows as-is The World According to Jeff Goldblum, Y: The Last Man, Mighty Ducks, Turner & Hooch, Willow, Maggie the doll and 2022 Cheaper by the dozen from their streaming services. During the company’s earnings call in May, Disney CFO Christine McCarthy said the company expected to incur more than $1.8 billion in impairment charges as a result of the content removal.
Friday’s SEC filing said Disney is “continuing to review” and expects to remove additional produced content from its streaming services in the third quarter, with those removals expected to result in an additional $400 million in write-downs.
Disney’s direct-to-consumer streaming losses have narrowed in recent months, with the company reporting losses of $659 million in its fiscal second quarter, down from the $1.1 billion reported in the previous quarter. But even as Disney takes write-downs related to content removal, McCarthy noted during the earnings call that Disney expects streaming losses to widen by $100 million in the current quarter.
In removing programs from Disney+ and Hulu, Disney is also following Warner Bros. Discovery in an effort to reduce streaming costs. The company, run by David Zaslav, removed similar shows Westworld, The Nevers, Generation, FBoy Island, Legendary, The Time Traveler’s Wife, The Gordita Chronicles and Raised by wolves from its streaming service, then called HBO Max, and later licensed much of that programming to Roku and Tubi.
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