Fiscal 2023 came to a close for Walt Disney (DIS -0.04%) over the weekend, and the iconic media stock is failing to connect with investors. It won't be until early November that Disney announces its financial results for the full fiscal year, but the shares hit a new three-year low last week.
The month ahead will be relatively quiet, and not just for the lack of a financial update. It's also a rare month with no theatrical releases for Disney. There is still plenty to watch for here in October. There will be a new season of a hit show, a substantial price hike for its streaming service, and a new theme park attraction on the way. Let's take a closer look at some of the dates investors should watch.
Oct. 5
Disney+ has been successful in mining its Star Wars and Marvel catalog of characters and franchises to drum up exclusive content for its flagship premium streaming service. One of its biggest hits came two years ago with Loki. When the Thor spinoff starring Tom Hiddleston premiered on Disney+ in the springtime of 2021, it became the platform's most successful Marvel offering to date. It's time for an encore.
A second season of Loki hits Disney+ on Thursday. It will be another limited series consisting of six episodes. Unlike the leading streaming service that makes entire new seasons available at the same time, Disney+ prefers to milk its high-profile shows with weekly installments.
Image source: Disney.
Oct. 12
Prices for Disney's premium streaming services are going up next week, as long as you insist on skipping commercials. The media giant will be raising prices in Oct. 12. Monthly subscriptions for ESPN+ and ad-free versions of Hulu and Disney+ will be moving 10%, 20%, and 27% higher, respectively. The move follows price hikes of as much as 38% last year.
We know why Disney is whipping out the price gun with double-digit percentage increases for the second year in a row. Its direct-to-consumer segment is losing a lot of money, clocking in with an operating deficit north of $4 billion in fiscal 2022. The red ink has improved to $2.2 billion through the first nine months of fiscal 2023, and Disney expects the business to be profitable by the end of next year.
Subscriber growth has slowed for Disney+, but that's no longer a deal breaker. Investors have dumped shares of Disney largely because of the red ink for its direct-to-consumer segment. Disney's plan to exceed $5.5 billion in annual savings is leaning heavily on shaving content costs, but raising prices also helps if churn doesn't spike in the process.
Oct. 16
Disney World's newest attraction -- Journey of Water, Inspired by Moana -- officially opens at Epcot on Oct. 16. The new experience isn't going to generate the same kind of buzz as the two unique coaster experiences it has opened in back-to-back years. This is a walkthrough attraction with interactive water features along the trail.
It's still a welcome addition to a theme park that has been largely under reconstruction for the past couple of years. If Disney World attendance trends rebound heading into the holiday seasons, a lot of the credit will go to the many enhancements at Epcot that have recently been introduced or will roll out in the coming months.
