Disney Faces Significant Losses as Streaming Service Feels the Impact
Disney’s recent financial struggles have taken a toll on its streaming service, Disney+, as the company quietly removed the $53 million sci-fi adventure movie Crater just seven weeks after its exclusive premiere on May 12. While Disney has not officially commented on the decision, it is believed that the film was scrapped to cut losses by saving on licensing deals.
Crater followed a group of friends on a journey to a legendary crater on the moon. Despite receiving a 63 percent audience score on Rotten Tomatoes, the film failed to gain traction due to its underlying sociological themes of inequality and anti-capitalist and pro-union messaging. Breitbart’s John Nolte even labeled it a woke sci-fi failure.
The removal of Crater from Disney+ comes as part of a mass content removal plan announced during the company’s quarterly earnings call in May. CFO Christine McCarthy revealed that Disney+ and Hulu, both owned by Disney, would lose some content in the coming months. In total, over 70 movies and TV shows, including titles like Willow, Mighty Ducks, The Mysterious Benedict Society, Earth to Ned, and Y: The Last Man, were axed. Crater was pulled from Disney+ on June 30, resulting in a $1.5 billion write-down.
Disney’s streaming service has also experienced a decline in subscribers. The first three months of 2023 saw a loss of 4 million subscribers, as reported during the May earnings call. This is a significant blow for Disney, as it tries to recover from its recent box office flops, many of which were under the Pixar or Marvel banners. Films like Lightyear, Thor: Love and Thunder, Strange World, Black Panther: Wakanda Forever, Ant-Man and the Wasp: Quantumania, Guardians of the Galaxy Vol. 3, The Little Mermaid, and Elemental failed to meet expectations.
Disney’s most recent release, Indiana Jones and the Dial of Destiny, also underperformed at the box office. The anticipated sequel, with a $300 million budget, grossed just $60 million domestically on its opening weekend. In a surprising turn of events, it even fell behind Angel Studios’ Sound of Freedom on the Fourth of July, becoming the No. 1 movie in America.
If Disney cannot reverse its financial losses, the iconic studio, which celebrated its 100th anniversary this year, may find itself sinking under the weight of its failures. It is crucial for Disney to reevaluate its strategies and find ways to regain its standing in the industry. Only time will tell if the house of the mouse can bounce back from its current struggles and regain its position as a leader in entertainment.
