May 7, 2024 – 7:08 AM PDT
LOS ANGELES (Reuters) – Walt Disney’s (DIS.N) surprise profit in its streaming entertainment division was eclipsed by a drop in its traditional TV business and weaker box office, sending its shares down 8.5% in morning trading.
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Like other media companies, Disney has been trying to adapt to consumer migration from cable television to streaming entertainment, and had promised Wall Street that its streaming operation would become profitable by September.
The division has been losing money since Disney+ debuted in 2019 in a major push by the company to compete with Netflix (NFLX.O).
The direct-to-consumer entertainment division, which includes the Disney+ and Hulu streaming services, reported operating income of $47 million for the January-March period, compared with a loss of $587 million a year earlier.
But the…
