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Disney Begins To Front Load Certain Content Costs
We’ve contacted Disney to better understand the impact a new accounting policy change had on FY22 results.
November 30, 2022
The Walt Disney Company (DIS) inserted new language in its latest annual report detailing a new accounting policy change that will alter how the company accounts for content expenses. Disney implemented the accounting change in the latest quarter and disclosed that for certain content:

“...we are accelerating the rate of amortization in early periods, slowing the rate in later periods and have adjusted the useful life based on historical and projected usage patterns.”

With Disney+ impacting historical and estimated viewing patterns— the most sensitive factors affecting projected usage— it’s understandable useful life estimates may be more susceptible to change. However, the policy change also paves the way to pull forward costs and allow newly returned CEO Bob Iger to show greater profitability in the future.

DuDil has contacted Disney and requested the company quantify the impact the change had on its fiscal Q4 and full year. We’ll update subscribers when new information is developed.
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