Disney is planning a splashy debut for its branded streaming video service launching later this year. But the current reality of Disney’s push into streaming is marked by some massive financial losses.
The company submitted a new 8K filing with the SEC to provide financial information regarding its recently formed Direct-to-Consumer and International business segment. For the fiscal year ending on Sept. 30, 2018, both Hulu and BAMTech helped contribute to losses totaling more than $1 billion.
Disney said Hulu was the primary reason the company posted a $580 million loss in equity investments. The company said the higher losses at Hulu were driven by higher programming, labor and marketing costs, partially offset by growth in subscription and advertising revenue.
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