Chief exec says increased investment in non-US content is delivering ’encouraging’ results
Disney chief exec Josh D’Amaro used his first quarterly results announcement to unveil a three-pronged growth strategy and a plan to bolster its international streaming efforts.
D’Amaro, who replaced Bob Iger earlier this year, revealed streaming revenue rose 13% in the three months to 28 March, hitting $5.49bn, while profit soared 88% to $582m, partly due to price rises.
Disney’s broader entertainment division saw revenues rise 10% to $11.72bn, and D’Amaro used his letter to investors and his subsequent results call to talk up the potential of international expansion for Disney+.
The chief exec wrote that the Mouse House is “focused on driving Disney+ growth outside the US” and had seen “early success with local originals”, noting Battle of Fates in Korea and Rivals in the UK, with the latter’s second season debuting on 15 May.
“Disney+ has meaningful opportunity for growth internationally and we’re focused on scaling outside the US,” he told investors.
“We are increasing our local content investments and early results are encouraging. While more work remains, we’re pleased with the progress we’re making in both the consumer experience and underlying economics.”
Further details of international spend were not revealed by Disney, which has been expanding its broadcaster partnerships across Europe recently in a bid to drive subscriber growth.
Growth strategy
D’Amaro also outlined a three-pronged growth plan that includes focus on investing in IP and creativity, expanding its global reach, and tapping into new technology such as AI to fuel output and improve monetisation.
He confirmed the company would not be investing in OpenAI following the latter’s decision to shutter creative platform Sora, but said AI use on “content creation and production” was being explored.
He added that Disney viewed AI as offering “a meaningful long-term opportunity”, but he wanted to “keep human creativity at the center of everything we do and respect creators and the value of our intellectual property.”
D’Amaro also outlined the importance of its gaming efforts - including its partnership with Epic Games - to attract younger audiences, which have come alongside a push into vertical video with Verts. Broadcast International revealed in October that Disney+ has also been exploring a move into microdramas.
Overall revenue across the group was up 7% at $25bn and earnings per share stood at $1.57, beating Wall Street expectations. Operating income for Q3 is expected to top $5.3bn, up 16% year-on-year, the company added.
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