Disney released its Q4 and full-year earnings reports yesterday, and the fiscal picture looks positive. Total annual revenue for 2023 was up by 7% to US$88.9 billion, driven largely by growth in the company’s entertainment and experiences businesses.

The parks and experiences segment contributed US$32.5 billion, which is 16% more revenue than in 2022. Higher attendance levels and more robust guest spending at both domestic and international Disneyland Resorts, as well as an increase in bookings for Disney Cruise Lines, are behind this jump. However, revenue for Walt Disney World Resort was down year over year, due to the closure of Star Wars: Galactic Starcruiser and fewer bookings for daily hotel rooms. 

CEO Bob Iger has identified Disney’s parks and experiences business as one of four key building opportunities for the company. In September, he announced plans to double Disney’s parks spending to US$60 billion by 2033. And 14 new attractions are already scheduled to launch next year, including the World of Frozen at Disneyland Resort Hong Kong and the maiden voyage of a sixth cruise ship in the Disney fleet. 

The other three growth areas are ESPN, Disney+—which Disney expects to hit profitability in Q4 2024—and improving the economics and output of its film studios. 

Disney’s entertainment revenue for the full year was up slightly (3%) to US$40.6 billion, and the studio was behind four of the top 10 highest-grossing films at the global box office in 2023, with Guardians of the Galaxy Vol. 3 (US$845 million), The Little Mermaid (US$569 million), Elemental (US$495 million) and Ant-Man and the Wasp: Quantumania (US$476 million). 

The Disney+ streaming business also grew in 2023, with the platform picking up an additional seven million subscribers in Q4 (Disney’s fiscal year ends in September) to hit a total of more than 150 million. The company’s direct-to-consumer revenue (generated by services including Disney+, Disney+ Hotstar and Hulu) was up 12% to US$5 billion.  

Disney spent US$27 billion on content in 2023, which is US$3 billion less than the previous year. This investment reduction is part of its ongoing goal to generate US$7.5 billion in cost savings by the end of 2024. Disney plans to cut an additional US$2 billion from content spending in 2024 (aiming for US$25 billion) to help it recover from the 2023 strikes and accelerate Disney+ to profitability. 

Photo courtesy of Disney