Guardians of the Galaxy Vol. 3
August 9, 2023
Disney’s “content sales/licensing and other revenue” business segment saw third-quarter ended July 1 revenue dip 1% to $2.08 billion from $2.11 billion in the prior-year period. The segment, which includes home entertainment and theatrical, posted a 900% increase in its operating loss to $243 million from a $27 million loss in the previous-year period.
The increase in operating loss was due to lower TV/SVOD and theatrical distribution results. Disney said the decrease in TV/SVOD distribution results was primarily due to lower sales volume of both film and episodic television content.
Disney had five of the Top 15 theatrical titles (and production/distribution expenses) in the quarter, including Guardians of the Galaxy Vol. 3, The Little Mermaid, Elemental, The Boogeyman and Indiana Jones and the Dial of Destiny.
Lower theatrical distribution results reflected the performance of Doctor Strange In the Multiverse of Madness (the No. 4 box office title in 2022 with $955.7 million worldwide) in the prior-year quarter compared to Guardians of the Galaxy Vol. 3 in the current quarter and marketing costs for Indiana Jones and the Dial of Destiny, which was released in most territories in the last few days of June. The current quarter also included the release of Elemental and The Little Mermaid, while the prior-year quarter included the release of Lightyear.