Disney has announced that it will limit Marvel movies to three per year and Disney+ shows to two in a bid to focus on “quality” after criticism that the company makes too many mediocre superhero movies.
The Mouse House announced Tuesday that streaming platforms Disney+ and Hulu delivered a quarterly operating profit of $47 million for the first time in history.
Nevertheless, the company gave a disappointing outlook for its theme park business, and its shares fell more than 10% in intraday trading.
Disney CEO Bob Iger, who fended off a proxy fight from billionaire investor Nelson Peltz just a month ago, told analysts that the Marvel movies released this year will star Ryan Reynolds and Hugh Jack. He said there was only one movie, “Deadpool & Wolverine,” starring Mann. Debuted on July 26th.
Iger said the next Marvel movie, the Captain America sequel, won’t be released until February 2025. The third Marvel movie, Thunderbolts, which focuses on Captain America’s sidekick Bucky Barnes, is scheduled for release in May 2025.
The media giant will also produce Marvel movies and shows for Disney+, including content related to “Black Panther” and “Spider-Man.” The release date has not yet been announced.
“We’ve been working hard with the studios to reduce production volume and focus on quality,” Iger said on a conference call. “That’s especially true for Marvel… Some of what’s happening is basically a remnant of the desire to increase volume in the past.
“We’re going to slowly reduce our production, going from four TV series a year to maybe two a year, and we’re going to go from four movies a year to two, up to three. What is that path? ”
Disney reported first-quarter revenue increased 1.4% to $22.08 billion. Excluding items, earnings per share were 1.21 cents, up from 93 cents a year ago. Wall Street had expected revenue of $20.53 billion and EPS of $1.02.
The company’s streaming businesses, which include Disney+, ESPN+ and Hulu, are inching closer to profitability goals. The division posted an $18 million loss, weighed down by a $65 million loss from ESPN+.
On the positive side, Disney noted that Disney+ and Hulu had combined operating income of $47 million. The company now expects the division to be profitable by the fourth quarter of its fiscal year ending Sept. 30.
But Disney also cautioned that it expects operating profit for the current quarter to be flat for its Experiences division, which is primarily made up of theme parks. Wall Street had expected a 12% increase.
