Disney cuts $55.5 million from Snow White remake amid controversy

In the United States, Disney launched its streaming platform Disney+ in late 2019, branded as a risky investment amid changing consumer behavior. Research emerged showing that Disney invested an astonishing $1 billion on just four original streaming series, which collectively earned a disappointing average audience score of only 57.8% on Rotten Tomatoes. The financial commitment was further complicated by Disney's previous decision to cease its licensing deal with Netflix, which led to a projected loss in operating income of around $150 million for Disney in 2019 due to decreased licensing revenue. Despite early financial challenges, the company maintained optimism around the streaming business, bolstered by its extensive library and new release strategy designed to offer theater films on the platform a few months post-release. Disney allocated substantial budgets to flagship franchises, such as Marvel and Star Wars, although the audience reception varied greatly. Among these shows, one title received a dismal audience rating of just 44%, contrasting sharply with the audience's 82% approval rating for the second season of Loki, which was among the platform's most successful premieres. One notable show, Andor, even surpassed its franchise counterparts with a remarkable 87% audience score, resulting in a second season confirmation that is expected to premiere next year. Despite these successes, Disney also faced setbacks, including the cancellation of other series due to residual audience dissatisfaction and potential financial losses. The challenges of the streaming model—characterized by fixed subscription fees enabling families to potentially watch multiple shows at a low cost—serves as a significant risk factor that could impact revenue generation. Furthermore, Disney's financial strategies were not limited to streaming, as seen in the expensive production of the live-action remake of Snow White. By mid-2022, the costs for producing the film had already reached $183.3 million, with projections indicating spending could exceed $269 million by the end of 2023. This financial burden led Disney to forecast overspending on its anticipated production budget. Surprisingly, Disney secured a substantial reimbursement of $55.5 million from the UK government, allowing it to reduce net expenditure on the film to $213.9 million, but indicating other financial pressures loom for the studio. Behind the scenes, financial complexities regarding production accounting in the UK further complicated the cost structure, revealing how external factors like tax incentives and internal projections influenced Disney’s broader financial strategies for its film slate. Ultimately, the combined situation highlights broader industry challenges as major studios navigate an evolving media landscape, marked by the costly nature of high-profile streaming content and the financial implications of ambitious film productions.