May 11, 2022
On May 11, The Walt Disney Company said revenue from “content/licensing and other sales,” which includes packaged media and transactional VOD, fell 3% to $1.9 billion, from 1. $84 billion in revenue in the prior year period. Segment operating profit fell nearly 95% to $16 million from $312 million last year. The decline in operating income is due
lower TV/SVOD distribution results and, to a lesser extent, lower home entertainment due to lower sales of catalog titles in the current quarter.
In the prior year period, top-selling Disney titles included Mulane and Soul, all in musical entertainment Encanto and residual income of Shang-chi and the legend of the ten rings were the top-selling DVD and Blu-ray Disc titles in the second quarter.
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Lower TV/SVOD distribution results were due to lower sales of episodic TV content, driven by higher sales of “Modern Family” and “How I Met Your Mother” in the prior year quarter .
Speaking at the May 11 tax appeal, Chief Financial Officer Christine McCarthy said the decline in home entertainment revenue included management’s “strategic decision” to redirect Disney titles to direct-to-home broadcast channels. consumers, rather than to traditional retail channels.
“As a reminder, these results are deliberately aligned with our decision to use our content on our own direct-to-consumer services,” McCarthy said.