Disney Takes $1B Hit For Ending License Deals To Send Content To Streaming; Quarterly Sales Up, Profit Falls

deadline.com:

Walt Disney beat on streaming subs but its financials missed the mark due to a hefty $1 billion it said it “owned a customer to early terminate license agreements for film and television content delivered in previous years in order for the Company to use the content primarily on our direct-to-consumer services”Revenue of $19.2 billion was up 23% from a year ago but below Wall Street’s forecast — by about $1 billion.

Profit fell 48% to $470 million. Earnings per share of 26 cents was down from 50 cents. Excluding items. EPS was $1.08, up from 79 cents.The earnings announcement didn’t elaborate on the content referred to.

Execs are set to hold a conference call shortly at 4:30 pm ET.The Bob Chapek-led company divides its businesses in two giant segments, media/entertainment and parks.

Disney Media and Entertainment Distribution (DMED) – with linear networks (domestic and international), streaming and content sales/licensing, which that wraps in studios.MORENew and returning series on broadcast, cable and streamingSeries that made it or didn’t make it in 2021-22Broadcast networks’ fall lineups and schedules