Disney wiped a number of shows and movies from its Disney+ service over the last few months. While that was an inconvenience for audiences, it proved costly for the company.
Disney disclosed on Wednesday that it took a $2.4 billion charge to account for “content impairments” aka the removal of content from its direct-to-consumer businesses, which include Disney+ and Hulu. It’s a big reason why Disney lost money in the fiscal third quarter, although the charge is considered a one-time item and is excluded from earnings from “continuing operations.”
The purge, which largely happened on Disney+, took viewers by surprise and served as a reminder that as a streaming service subscriber, you don’t own any of your favorite movies and shows, and that they could disappear at any time.
High-profile shows that disappeared include Willow, The Mighty Ducks: Game Changers and the series reboot of Turner & Hooch, while movies included Artemis Fowl, the 2022 version of Cheaper by the Dozen and Black Beauty.