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With over 50 titles already pulled, a new report reveals that Disney is getting a $1.5 billion write-off thanks to its Disney+ and Hulu content removal. It was announced this past May that the House of Mouse would be looking to make up for its four million subscriber loss with a multitude of steps, including hiking the price of an ad-free Disney+ membership, developing a one-app experience merging Disney+ and Hulu’s content, and removing a variety of titles from both streaming platforms.
Nearly a month after the purge was first announced, a new SEC filing (via Variety) has revealed that Disney is getting a $1.5 billion write-off from their Disney+ and Hulu content removal. Additionally, in an earnings call this week, CFO Christine McCarthy indicated it could be up to $1.8 billion written off to reduce the studio’s tax bill, which is said to stem from potential further purging of content produced specifically for the streamers.
Will Disney+ & Hulu Lose More Content?
Though WarnerMedia has been under fire for similar tactics for nearly a year, Disney has become the focus of criticism the past month since pulling a variety of titles from both Disney+ and Hulu. Beginning near the end of May, 52 titles have found themselves without a home, including the acclaimed Willow sequel series, whose season 2 was put on hiatus just prior to the removal, the well-received Rosaline and Joey King-led action-thriller The Princess and Bryan Cranston’s The One and Only Ivan, among others.
With the studio already eyeing $1.5 billion in write-offs from this initiative, it seems likely that both Disney+ and Hulu will see further content removal in the coming weeks, though it’s largely unclear what titles could be on the chopping block. Many of the movies and shows cut thus far have, admittedly, been cancelled series or one-off films unlikely to be inviting rewatches from users. However, given the planned future for Willow and it being produced by Lucasfilm, its removal showed that even big-name content could be targeted.
With the recently launched Max leading to more HBO Max content removal on WarnerMedia’s part, and Netflix reportedly looking to slash their spending on original content, Disney getting such a big write-off for its Disney+ and Hulu removals could see other streamers look at this in a way that’s harmful to creatives and consumers alike. However, with Netflix shareholders denying execs a bonus package worth double what the WGA is asking for in the ongoing writers strike, one can hope this negative streamer trend reverses sooner than later.
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