“At Disney+, while we still expect higher net adds in the second half of the year versus the first half, it's worth mentioning that we did have a stronger-than-expected first half of the year.”

In context

“closed for the first 3 weeks of the quarter. Shanghai Disney has been closed quarter-to-date, and we do not yet have visibility to a reopening date. As we continue to strategically prioritize leveraging our content for our own services, we expect content sales, licensing and other operating results to decrease in the third quarter by approximately $150 million to $200 million versus the prior year. The expected decrease is primarily driven by declines in content licensing along with a continued decline in home entertainment results. Direct-to-Consumer programming and production costs in Q3 are expected to increase by more than $900 million year-over-year, reflecting higher original content expense at Disney+ and Hulu increased sports rights costs and higher programming fees at Hulu Live. At Disney+, while we still expect higher net adds in the second half of the year versus the first half, it's worth mentioning that we did have a stronger-than-expected first half of the year. Additionally, note that some of the Eastern European markets were launching in towards the end of Q3, including Poland, are in regions being impacted by geopolitical factors. As it relates to content spend, we previously stated that we expect fiscal year 2022 cash content spend to total as much as $33 billion. We've adjusted that amount to as much as $32 billion to reflect a slightly slower cadence of spending than anticipated during the first half of the year. Note that we are still expecting a strong content slate in the back half of the year. And as Bob mentioned, we are confident in our long-term subscriber guidance of 230 million to 260 million Disney+ subs by fiscal 2024. We also still expect that Disney+ will achieve profitability in fiscal 2024. And with that, I'll turn it back to”