“And assuming we do not see a meaningful shift in the economic climate, we still expect Disney+ to achieve profitability in fiscal 2024 as losses begin to shrink in the first quarter of fiscal 2023.”

In context

“tion for long-term profitability and success. Our financial results this quarter represent a turning point as we reached peak DTC operating losses, which we expect to decline going forward. That expectation is based on three factors: first, the benefit of both price increases and the launch of the Disney+ ad tier next month; second, a realignment of our cost, including meaningful rationalization of our marketing spend; and third, leveraging our learnings and experience in direct-to-consumer to optimize our content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement and subscriber acquisition. With these factors, we believe we are on a path to profitable streaming business that generates shareholder value long into the future. And assuming we do not see a meaningful shift in the economic climate, we still expect Disney+ to achieve profitability in fiscal 2024 as losses begin to shrink in the first quarter of fiscal 2023. Christine will go into more detail on the drivers of our direct-to-consumer operating performance and provide more insight into our expectations going forward and some of our key assumptions. But first, I’d like to share a few highlights from the quarter. Q4 was another strong period for Parks, Experiences and Products, which continue to deliver phenomenal results despite the impact of Hurricane Ian. I want to thank the amazing cast members in Orlando who went above and beyond to help keep our guests safe and entertained during the storm. From protecting the many animals at Disney Animal Kingdom to packing thousands of meal kits to donating and delivering emergency supplies to the community, I am so proud of how our team came together to support our guests, our neighbors and each other. O”