We’re Breaking Down The Walt Disney Company’s Expectations for 2024

Whew! How is 2023 almost over?

As the end of the year nears, The Walt Disney Company held its fourth and final earnings call of the year on November 8th, and shareholders and fans alike tuned in to hear the highlights and shortcomings for 2023 as well as company expectations for 2024. Based on the fiscal reports for the past year, Disney CEO Bob Iger shared that the company’s goals for the upcoming year are ambitious, and, “[The company’s] progress has allowed us to move beyond this period of fixing and begin building our business again.” The growth comes approximately one year after Bob Iger returned to the company as CEO, in hopes that revenue would start to trend upward again after finances plummeted post-pandemic. So, now that things have seemed to stabilize, what are company expectations in 2024? Let’s talk about it!

During the earnings call, Iger shared that Disney is focusing on “four key building opportunities” throughout 2024 that will be “central” to the success of the company. Those opportunities are:

• Achieving significant and sustained profitability in streaming business
• Building ESPN into the preeminent digital sports platform
• Improving the output and economics of film studios
• Turbocharging growth in Experiences business

While Iger shared that Disney has already made considerable progress in these four areas, the company will “move forward with a sense of purpose and urgency,” in these areas in 2024. Here’s how!

Significant and Sustained Profitability in Streaming Business

In 2023, 50% of new Disney+ subscribers chose the ad-supported version of Disney+, and overall, subscribers grew by 7 million in the United States and Canada alone — just since the third quarter of 2023.

Further, after the company’s recent acquisition of Hulu, Iger said that the company is still on track to produce a “one-app experience” to create a bundle service with Disney+. A beta version will be launched in December, and it will also allow parents to set up profiles and parental controls ahead of the official launch of the bundle in spring 2024.

In the words of Iger, Disney is “bullish about the future of [the] streaming business.” He also told viewers to imagine the opportunities that a combined Disney+, Hulu, and ESPN could offer.

So, that’s something that we can look forward to in 2024! We’re interested to see what pricing would look like, as well as account-management and password sharing, as Disney+ recently cracked down on that. 

ESPN

Disney shared that another opportunity for 2024 is “taking ESPN, which is already the world’s leading sports brand, and turning it into the preeminent digital sports platform, allowing us to reach fans in compelling new ways and fully integrating key features into our primary ESPN offering.”

Iger shared that the company has already been working on this and has been exploring more strategic partnerships. The comment comes after the recent partnership with Penn  Entertainment to create ESPN BET.

Sports lovers, stay tuned for what is to come with Disney and sports streaming!

Output and Expenses at Studios

2023 was one of the biggest years for Disney in the global box office after the pandemic, with four titles in the top ten highest-grossing films of the year. Iger shared that the film studio “generates value throughout the entire company,” and is a huge priority in the upcoming year.

Disney hopes to strengthen creative output to generate more profit and better experiences throughout the brand as a whole.

Growth in DPEP

Disney Parks, Experiences, and Products (DPEP), according to Iger, has an opportunity to build “into an even bigger and more successful cash-flow generation business.”

In 2023, DPEP saw an increase in revenue with the addition of new Disney Cruise Line Experiences, new rides in the parks, and even the return of the Annual Pass sales.

Compared to pre-pandemic levels in fiscal 2019, DPEP has seen an overall growth in revenue and operating income over 25% and 30%, respectively. Now, the company plans to “turbocharge” growth in the Experiences business through strategic investments. Iger shared that due to their IP, innovative technology, buildable land, unmatched creativity, and return on invested capital, Disney is confident about the potential from new investments.

We’re already looking forward to new additions to the Experiences sector, from the addition of the Disney Treasure ship to the opening of Tiana’s Bayou Adventure at both Disney World and Disneyland. We can’t wait to see what else is in store!

And there you have it folks! We love following along with Disney News and sharing it with you all so that you can be just as excited as we are about what is to come. Make sure to follow along with us so that you never miss a thing and are always in the loop.

Looking for more updates from the final earnings call of 2023? Click here! 

What do you think of Disney’s goals for 2024? Let us know in the comments! 

Post a Comment