Disney Company (DIS) shares are dropping 5.3% in the U.S. premarket today, despite most mainstream business channels characterized its latest earnings release as being positive. What is really happening?

On the positive side, Disney reported Q2 2023 revenue of $21.82 billion, up 13% YoY. Total sales topped the Wall Street consensus estimate of $21.79 billion. The company reported revenue of $14.04 billion in its media and entertainment segment, up 3% on an annual basis. Revenue in the Parks, Experiences and Products segments was $7.78 billion, up 17% YoY.

On the flip side of the coin, the company reported Q2 EPS of just 93 cents, in line with expectations. Operating income in the media segment also fell a whopping 42% YoY, even though the operating income in the parking segment rose 23%. The direct-to-consumer (DTC) segment posted higher sales and improved operating income, still posting a loss of $659 million, up 26% from a year ago.

The Media segment reported linear TV revenue of $6.63 billion, down 7% YoY; DTC (direct-to-consumer) revenue of $5.51 billion, was up 12% YoY; and content sales/licensing revenue of $2.2 billion, also up 18% YoY.

The following are the subscriber number dynamic for streaming platforms at the end of Q2 on a quarterly basis:

• Disney+ U.S. Domestic: 46.3 million, -1%
• Disney+ International excluding Hotstar: 58.6 million, +2%
• Disney+ Hotstar: 52.9 million, -8%
• Total Disney+: 157.8 million, -2%
• ESPN+: 25.3 million, +2%