Take a look at the numbers under DMED --> Content Sales/Licensing and Other --> Home entertainment. Last fiscal year[1; p. 42], Home entertainment generated $8

Take a look at the numbers under DMED --> Content Sales/Licensing and Other --> Home entertainment. Last fiscal year[1; p. 42], Home entertainment generated $820 million revenue (down -19% YoY) while the overall sub-segment profusely bled -$287 million in operating losses. This past quarter[2; p. 44], the trend continues at $148 million revenue (down -36% QoQ) with the sub-segment still bleeding -$50 million in operating losses. Disney's problem within DMED segment appears to be that Linear Networks has been floating Direct-to-Consumer's massive growth burn for several years, but cash flows from the former are fading faster than the latter is tracking towards being operationally profitable. Speculating, what if what we're seeing is a sort of A/B test in a much smaller market where cutting a revenue stream with relatively high opex is an attempt to steer those high-retention consumers towards Direct-to-Consumer? In any case, investors have certainly expressed their dissatisfaction by severely punishing Disney's stock. With the residual impact of lockdowns in Shanghai and Hong Kong still being felt in DPEP, all the recent negative press surrounding Disney World/DeSantis feud in Florida, and now union strikes, Disney is without a doubt in a tough situation. [1] https://www.sec.gov/Archives/edgar/data/1744489/000174448922000213/dis-20221001.htm#i225682e36b4940d388ae4577116e8630_55 https://www.sec.gov/Archives/edgar/data/1744489/000174448922... [2] https://www.sec.gov/Archives/edgar/data/1744489/000174448923000099/dis-20230401.htm https://www.sec.gov/Archives/edgar/data/1744489/000174448923...