Also, it expects investment in Disney Plus and Hulu to impact operating income of DTC businesses to the tune of approximately $850 million.
Disney senior EVP and CFO Christine Mary McCarthy said: “It is expected that Direct to Consumer & International segment to generate about $800 million in operating losses for the quarter. We expect the continued investment in our DTC services, specifically Disney Plus, which will launch in just a few days and the consolidation of Hulu to drive an adverse impact on the year-over-year change in segment operating income of our direct-to-consumer businesses of approximately $850 million.”
Disney hopes the results to be partially offset by an operating loss of about $60 million at the 21CF film studio.
She added: “We estimate that 21CF film studio generated about $30 million and operating income during Q1 of fiscal 2019.”
She said consolidated CapEx in fiscal 2020 will higher by $500 million than in the prior-year. The increase in CapEx is primarily due to increases in DTCI and Corporate.