This has been attributed to macroeconomic factors like inflation, which have spiked up the cost of production for the company, as well as adverse foreign exchange impact that decreased Disney+'s ARPU by 5%. Nevertheless, Disney is focusing on the realignment of cost, including meaningful rationalization of marketing spending and optimization of content slate and distribution approach to deliver a steady state of high-impact releases that efficiently drive engagement. The Zacks Rank #3 (Hold) company is also about to launch a cheaper, ad-supported subscription offering for Disney+ to attract even more viewers and diversify its revenue stream.