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A significant contributor to Disney's financial decline has been its streaming strategy. Disney chose to heavily invest in Disney+ at the expense of traditional licensing models, a gamble that has largely backfired. The company is losing millions of subscribers each quarter and billions of dollars on streaming alone.
Furthermore, Disney's transparency about its streaming business is under scrutiny. Several allegations reveal that Disney concealed the true costs associated with Disney+. Instead of listing expensive content on the platform itself, Disney allegedly shifted costs by debuting shows on other legacy channels like ABC and Freeform—thus masking the financial strain.