After taking on a handful of shows and leaving Disney+ and Hulu last week, Disney said the company will incur a $1.5 billion impairment charge this quarter.
Will other shows be removed from Disney+?
The news comes in an SEC filing from the company on Friday (via Variety.) Disney notes that after removing “certain produced content” from its streaming services on May 26, 2023, they will record a $1.5 billion impairment charge. dollars in its third fiscal quarter. Financial state.
These fees will be charged “to adjust the book value of these content assets to their fair value”. Disney also said it will continue to review content on streaming platforms and plans to remove even more produced content from direct-to-consumer streaming services.
As a result, Disney expects to incur additional costs, upwards of $400 million. Last month, Disney chief financial officer Christine McCarthy said the company would pick up the slack. By writing the value, McCarthy claims, he would be able to remove the $1.5 billion from his balance sheet and reduce his tax bill in the future.
The move follows a fairly major purge of streaming services like Disney+ and Hulu, with the company removing more than 50 titles from the two in total. Series like Willow, The Mysterious Benedict Society, Dollface and more have all been axed, a move that Disney CEO Bob Iger says puts the company “on the right track for long-term streaming profitability.” “.