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Disney's streaming business (sans ESPN+) turns a quarterly profit

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Disney's streaming business (sans ESPN+) turns a quarterly profit

Walt Disney Co. is making massive strides toward making its streaming business profitable, a milestone that comes none too soon as its traditional TV networks continue to decline.

The Burbank media and entertainment giant reported overall streaming business revenue of $6.19 billion for the second fiscal quarter of 2024, up 12% compared with a year earlier. Disney’s streaming business — which includes Disney+, Hulu and ESPN+ — reported an operating loss of $18 million for the three-month period that ended March 30, a 97% change from last year, when it reported losing $659 million.

The company’s “entertainment streaming” business, which consists only of Disney+ and Hulu (and not ESPN+), was profitable during the quarter, notching operating income of $47 million, compared with a loss of $587 million a year earlier. Excluding ESPN+, streaming revenue of $5.64 billion was up 13% from a year earlier.

Overall, Disney generated $22.1 billion in revenue that quarter, up 1% from the same period a year earlier. Sales came in roughly in line with analysts’ estimates, according to FactSet. Earnings, excluding certain items, were $1.21 per share, up from 93 cents a year earlier and better than the $1.10 that analysts had predicted, on average.

Disney Chief Executive Bob Iger noted the growth in streaming in a statement, saying that the business, in addition to the company’s continued strength in experiences, which includes the parks, drove the company’s second-quarter performance.

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Disney’s investment in streaming, which accelerated to grow the Disney+ service that launched in 2019, has lost billions of dollars to date. The company expects its combined streaming operations to finally turn a profit in the fiscal fourth quarter of 2024.

This marks Disney’s first quarterly earnings report since Iger trounced activist investor Nelson Peltz in a proxy fight, in which Peltz had sought a board seat. Investors, in a vote tallied at Disney’s annual shareholder meeting in April, decisively rejected Peltz’s bid.

Peltz, among other things, had demanded that Disney show a realistic plan for Netflix-like profit margins in the costly streaming business. To get Disney closer to its profitability goals, Iger waged a severe cost-cutting plan, eliminating more than 8,000 jobs.

“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results,” Iger said in a statement.

Although Disney’s streaming business was a bright spot for its entertainment segment, the company’s linear TV business struggled in the quarter, reporting $2.77 billion in revenue, a decrease of 8% compared with a year earlier. The linear networks reported operating income of $752 million, down about 22% from the same period last year.

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The company said its losses in linear networks stemmed from lower affiliate revenue because of a decrease in subscribers after Spectrum dropped eight networks, including Freeform and Disney Junior, from its lineup as part of Disney’s new cable licensing agreement with cable giant Charter Communications. Those negotiations resulted in a more-than-10-day blackout of ESPN and ABC channels as the two companies hashed out an agreement.

The company’s film studio business also struggled, with revenue falling 40% to $1.39 billion for an operating loss of $18 million. Disney posted weak box-office results compared with last year’s second quarter, when it had Marvel’s “Ant-Man and the Wasp: Quantumania” and “Avatar: The Way of Water.”

Disney movies have had a weak run in 2024 and the company is hoping for a rebound with “Kingdom of the Planet of the Apes,” “Inside Out 2” and “Deadpool & Wolverine.”

Disney’s sports sector reported revenue of $4.31 billion, up 2% compared with a year earlier. ESPN operating income was $778 million, down 2% from the year-earlier period.

Meanwhile, its “experiences” division — which encompasses theme parks such as Disneyland and Walt Disney World; cruise lines and consumer products — continued to drive profit for the company with $8.39 billion in revenue, an increase of 10% from a year earlier. Operating income from the parks division was $2.29 billion, up 12%. The segment accounted for 59% of the company’s operating income.

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The growth in experiences came from higher results at Walt Disney World in Florida and Disney Cruise Line, the company said.

Additionally, Disney took a $2-billion write-down of its troubled Star India business after agreeing to merge the operations into a joint venture controlled by rival Reliance Industries, a major Indian conglomerate. The Star India business, along with its HotStar streaming service, became part of Disney through its 2019 acquisition of 21st Century Fox.

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After Amazon drops OpenAI movie ‘Artificial,’ film finds new home at Neon

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After Amazon drops OpenAI movie ‘Artificial,’ film finds new home at Neon

A Hollywood portrayal of OpenAI Chief Executive Sam Altman portrayed by actor Andrew Garfield will be released later this year, after Amazon MGM Studios dropped the movie.

“Artificial,” which chronicles Altman‘s 2023 ouster from OpenAI and his reinstatement as CEO, was acquired by Neon, the studio announced Tuesday.

“The acquisition underscores Neon’s commitment to partnering with visionary filmmakers, and bringing ambitious cinema to audiences around the world,” the studio said in a statement. “Artificial will compete in this year’s Oscar race.”

The film has a critical take on artificial intelligence, according to three sources briefed on it who declined to be named. That portrayal caused Amazon to want to distance itself from the film, given the company’s $50 billion investment in OpenAI, two of the sources said.

Amazon declined to comment on the claims. In a statement, the company said it has “the utmost respect and admiration” for the movie’s director Luca Guadagnino. “We believe that ‘Artificial’ will be better served if it were released by a different studio and are working closely with the filmmaking team to find the film a new home,” Amazon said.

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The deal was negotiated by Neon, CAA Media Finance and Amazon. CAA and Amazon declined to comment. A Neon spokesperson did not immediately respond to questions regarding the financial terms of the deal.

Puck News first reported Amazon dropping the movie.

Other studios, including Netflix, A24 and Focus Features, screened “Artificial.” Netflix and Focus passed on the film.

Amazon’s decision to drop the film comes at a time when Hollywood is grappling with the growth of artificial intelligence. Some creatives are concerned that the technology could displace jobs; others worry that their likenesses are being used to train AI models without their permission or compensation.

Meanwhile, many AI companies are eager to work with studios, saying their AI tools can help speed processes and reduce costs.

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To foster more nuanced discussions about artificial intelligence, Google is collaborating with talent management firm Range Media Partners to develop films that present a less dystopian view of the technology.

Amazon passing on the film raises questions about whether tech company-backed studios would be willing to release movies that are critical of innovations in which they have a stake. It could create a chilling effect, said Robert Thompson, director of Syracuse University’s Bleier Center for Television and Popular Culture.

“The chilling effect could not only be on films critical of AI, they could be on films critical of all kinds of things that these companies have their tentacles in,” Thompson said.

Stories about tech company founders can be attractive to audiences, most notably with the 2010 film “The Social Network” about the founding of Facebook. That film earned $225 million worldwide at the box office, according to Paul Dergarabedian, head of marketplace trends at Rentrak. “The Social Network” came out a time when many people were talking about Facebook and had big talent behind it, including director David Fincher, Dergarabedian said.

“Neon is a perfect custodian for this film, and they will shepherd it to the big screen, I think very effectively,” he said. “They’re very filmmaker-centric … I think they found the perfect home with Neon.”

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“Artificial” features major talent, with actor Monica Barbaro portraying former OpenAI Chief Technology Officer Mira Murati, and Ike Barinholtz as Elon Musk. Other actors include Jason Schwartzman and Billie Lourd.

Director Guadagnino has worked on films including “Challengers” and “Call Me By Your Name.”

Staff writer Samantha Masunaga contributed to this report.

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Young Washington (Christian Movie Review) – The Collision

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Young Washington (Christian Movie Review) – The Collision

About the Film 

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On the Surface

For Consideration

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Beneath The Surface

Engage The Film

The Makings of a Leader

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  • Daniel holds a PhD in “Christianity and the Arts” from The Southern Baptist Theological Seminary. He is the author/co-author of multiple books and he speaks in churches and schools across the country on the topics of Christian worldview, apologetics, creative writing, and the Arts.

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’47 Ronin’ director Carl Erik Rinsch sentenced to 30 months in prison for Netflix fraud case

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’47 Ronin’ director Carl Erik Rinsch sentenced to 30 months in prison for Netflix fraud case

Carl Erik Rinsch, the director of the 2013 Keanu Reeves action film “47 Ronin,” will serve more than two years in federal prison for defrauding Netflix of $11 million.

U.S. District Judge Jed S. Rakoff on Monday sentenced 48-year-old Rinsch to 30 months in prison, the U.S. Attorney’s Office, Southern District of New York, announced. Federal prosecutors convicted Rinsch in December of wire fraud, money laundering and other counts. A legal representative for Rinsch did not immediately respond to a request for comment on Tuesday.

Federal prosecutors indicted Rinsch in March 2025, alleging the $11 million went into Rinsch’s personal accounts. The filmmaker “quickly transferred” the money from the Rinsch Co. account, where it had been deposited March 6, 2020, by Netflix, through additional accounts until about $10.5 million wound up weeks later in a personal brokerage account. He lost more than half of that money in less than two months via risky investments in the stock market, the indictment said.

Though Rinsch told the streamer that his sci-fi show “White Horse” was progressing nicely, the filmmaker allegedly moved the remaining money into cryptocurrency and profited from crypto speculation over the next couple of years. The streamer had invested around $44 million in the show. Rinsch was accused of spending around $10 million on five Rolls-Royces, a Ferrari, watches, clothing, luxury bedding and linens, credit card bills, attorneys to sue Netflix for more money, and lawyers to work on his divorce.

He was arrested in West Hollywood and released the same day after agreeing to post a $100,000 bond to guarantee his appearance in a New York federal court.

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Rinsch never finished the Netflix show.

During his sentencing, Rinsch and his legal team told the court his behavior was a result of mental health struggles and medication problems and they are working to address those issues with a new care provider, the Associated Press reported.

“I failed to recognize the danger of the state I was in,” Rinsch said, though his mental issues were not described in court, and his attorneys declined to provide further detail.

Ahead of the sentencing, Reeves — the star of Rinsch’s most notable project to date — penned a letter in May requesting “leniency and mercy as well as justice” in the filmmaker’s sentencing.

In addition to prison time, Rinsch must serve three years of supervised release, forfeit the $11 million and pay $700 in mandatory special assessments, according to Monday’s announcement. U.S. Attorney Jay Clayton said in the announcement: “Today’s sentence sends a deterrent message: fraud will not be tolerated.”

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The Associated Press and former Times assistant editor Christie D’Zurilla contributed to this report.

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