Walt Disney Co. gave investors a more detailed look at their investment in building a direct-to-consumer business in financial documents filed today with the SEC. The company redirects Disney's performance over the past three financial years to adapt to the new corporate structure created by the reorganization last March.
While the numbers are not new (this is not a conversion of earnings) archiving more clearly comes the losses associated with Disney's investments in Hulu and BAMtech, the technology underlying ESPN + and upcoming Disney + streaming services . The latter is expected to be launched later this year.
Disney's direct consumer companies, along with its international channels, raised 738 million. Kr. Losses in fiscal policy 201
Disney's share of Hulu's losses was $ 421 million.
The Burbank entertainment giant also undertook losses as a result of its decision to acquire a majority stake in BAMtech for $ 1.58 billion in August 2017.
Disney has not been shy to use aggressively to position the company for the future, where consumers are increasingly accessing content via streaming services. It was one of the key factors cited in the decision to acquire much of the 21st Century Fox movie and television business – a 71.3 billion deal that will provide high quality content to populate Disney's direct consumer services.
"Our top priority is to take full advantage of our global brands and good content to create world-class direct to consumer entertainment," said Disney's Chairman and CEO Robert A. Iger in a statement. "We have the structure and management in place to drive the growth of our DTC business, and our acquisition of 21st Century Fox enhances our ability to deliver significant value to consumers and shareholders."
Disney said it will discuss its direct-to-consumer business more closely on Disney Investor's Day on April 11. It will probably be something Iger discusses during the company's next earnings call set to February 5.