Disney has reportedly received a significant $1.5 billion write-off due to the removal of more than 50 titles from its Disney+ and Hulu platforms. The move was announced in May of this year as a means of compensating for a loss of four million subscribers. In addition to content removal, Disney has also implemented other measures such as raising the cost of ad-free Disney+ memberships and merging the two platforms into a single app. The recent SEC filing has shed further light on the matter, revealing that the write-off may even reach $1.8 billion in order to reduce the studio's tax bill, potentially due to further content removals.
Will Disney+ & Hulu Lose More Content?
Disney has faced criticism recently for removing a range of titles from both Disney+ and Hulu. This move has resulted in 52 titles, including The Princess, The One and Only Ivan, and the highly anticipated Willow sequel series, being removed from the platforms. While some of the titles cut were already cancelled or unlikely to be revisited, the removal of the Willow series, which was produced by Lucasfilm, shows that even major content is not safe from being targeted. As Disney is already facing $1.5 billion in write-offs as a result of this initiative, it is likely that more content will be removed in the future, although it is unclear which titles will be affected.
The launch of Max has resulted in WarnerMedia removing more HBO Max content, while Netflix is said to be cutting back on its spending for original content. Disney's significant write-off for its Disney+ and Hulu removals may encourage other streaming companies to follow suit, which could have negative consequences for both creatives and consumers. Despite this, there is hope that the trend may reverse soon, as Netflix shareholders have denied executives a bonus package that is double what the WGA is requesting in the current writers' strike.
