Part 5/8:
Historically, Disney and other studios relied on multiple revenue streams—DVD sales, international licensing, and streaming rights—to recoup costs that theatrical revenues could not cover. However, the industry landscape has shifted dramatically. Now, with streaming platforms—particularly Disney’s own—dominating distribution, the traditional model of profitability has been disrupted.
Instead of selling rights to third-party platforms, Disney now places movies on its streaming service and accounts for licensing revenue internally. This scenario often results in inflated or less transparent profit figures, masking true performance. Consequently, films that once appeared to break even or turn a profit now often reveal losses once accounting for these new revenue streams.