Disney plans to Cut Content Spending to $25 Billion
In a bid to boost profitability and focus on major film productions, Disney plans to reduce its content budget to $25 billion in 2024, a significant drop from its initial targets. By: Wee Yan Ling
Disney has released a strategic move to enhance profitability and focus on major cinematic endeavours by curtailing its content budget. This is done by targeting a reduction to $25 billion by the end of next year. The revelation appears on the heels of challenges being posed by industry strikes and the re-evaluation of Disney’s content approach.
Disney’s Chief Financial Officer, Kevin Lansberry outlined the revised budget and indicated that they are allocating $25 billion for content in the upcoming fiscal year. This highlights the decrease from the $27 billion spent last year.
Disney had set sight on a content budget of $30 billion in the current year. However, unforeseen factors such as the Writers Guild of America and SAG-AFTRA have altered the financial projections of the company.
Lansberry had revealed that Disney is pursuing an “annualised entertainment cash content spend reduction target” of $4.5 billion. The full impact of the savings would gradually materialise in the Profit and Loss statement in the years to come due to the timing of the amortisation.
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