[tiffanyh]

Loss leader for Disney+

They are purposely taking a hit on box office sales, to drive Disney+ subscriptions.

Turning Red, Soul, and Luca were all movies that dropped on Disney+ the same day they hit theaters.

How can you gauge the "success" based solely on box office sales, when Disney's strategy is using this content as a loss leader strategy to drive subscriptions to Disney+?

[drdec]

Perhaps because, as the article cites, the streaming platform has lost $9 billion dollars since it launched.

[tiffanyh]

The economics of forgoing a $1B movie release for a $10/month subscription instead, that math will never add up.

Which is why Hollywood is cutting back on writers pay, actors pay, etc ... and hence the guild strikes.

There's also GAAP accounting issues as well on timing of match those expenses to revenue.