Disney’s Earnings Hurt by Costs at Disney+

Flagship streaming service, which hit ‘peak losses,’ added 12.1 million new subscribers, while parks division logs record revenue

While speaking at WSJ Tech Live, the chief executive gives his thoughts on the number of players in the streaming space and the possibilities of consolidation. Photo: Nikki Ritcher for the Wall Street Journal

Walt Disney Co. said it plans to make cuts to marketing and content budgets after the company reported weaker-than-expected fourth-quarter earnings Tuesday, the result of wider losses in the streaming business that offset the strong performance of the company’s theme parks.

“We are actively evaluating our cost base currently,” Christine McCarthy, Disney’s chief financial officer, said on a conference call with analysts. Some cost adjustments will provide near-term savings, others are long-term and structural, she said.

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