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Mickey Mouse stars within the “Mickey and Buddies Cavalcade” on July 2, 2020 in Lake Buena Vista, Fla.
Kent Phillips/Walt Disney World Resort by way of Getty Photographs
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Kent Phillips/Walt Disney World Resort by way of Getty Photographs
Mickey Mouse stars within the “Mickey and Buddies Cavalcade” on July 2, 2020 in Lake Buena Vista, Fla.
Kent Phillips/Walt Disney World Resort by way of Getty Photographs
It is not all magic within the kingdom of Disney.
General income grew 4% however, like most media companies, The Walt Disney Firm is navigating the ebbs and flows of client habits, cord-cutting and a sluggish advert market, amongst different points.
In at this time’s quarterly earnings report, CEO Bob Iger stated he was nonetheless optimistic concerning the firm’s future. He recognized three areas that he believes will drive future progress: motion pictures, parks/cruises, streaming/direct-to-consumer.
Listed below are six takeaways from at this time’s earnings name.
1. Motion pictures: Disney didn’t have the hits this summer season. Iger stated the efficiency of its latest releases have been “disappointing and we do not take that calmly.” Nonetheless, he factors to Disney’s “large run during the last decade” with such blockbusters as Avatar and Frozen. Disney has all the time identified methods to exploit its sturdy mental property with TV spinoffs, character-driven merchandise, movie-themed rides in its parks and the like.
2. Parks/resorts/cruises: General revenues for Disney’s theme parks and cruises elevated 13% to $8.3 billion. Attendance at Walt Disney World in Florida was down however that was offset by elevated attendance at its theme parks in Shanghai and Hong Kong. Iger stated “booked occupancy” for upcoming Disney cruises is at 98%.
3. Streaming: revenues for Disney’s direct-to-consumer choices like Disney+, ESPN+ and Hulu, elevated 9% to $5.5 billion. Driving income wasn’t essentially subscription progress however fairly elevated costs. Disney has elevated the value of a Disney+ subscription earlier than and it plans to take action once more. Iger stated the final time they raised costs, they did not see “important churn or lack of subs which was heartening.”
4. Twine-cutting impression is “unmistakable”: Iger rattled nerves recently when he steered that Disney’s linear networks, together with ABC, FX and Nationwide Geographic, won’t be important to its “core” enterprise (implying he could sometime jettison them). At present’s earnings report have been partly affirmation of that. Revenues for linear networks decreased 7% to $6.7 billion, and working earnings decreased 23% to $1.9 billion.
5. ESPN BET: Described as a “branded sportsbook for followers,” ESPN will partner with PENN Leisure in a $2 billion deal to supply shoppers, “the power to position bets with much less friction from inside our merchandise,” stated ESPN Chairman Jimmy Pitaro in an announcement.
Playing is not precisely on-brand for family-friendly Disney. Rick Munarriz, a senior media analyst with The Motley Idiot, jokes that, “it kind of simply offloads the chance.”
“You go on a Disney cruise ship, there is not any on line casino,” says Munarriz, “For a very long time, you could not get an alcoholic drink” within the Magic Kingdom. “However there’s cash being generated from playing on sports activities,” he says.
Bob Iger, CEO of The Walt Disney Firm, arrives for the screening of Indiana Jones and the Dial of Future on the Cannes Movie Pageant on Might 18, 2023.
Loic Venance/AFP by way of Getty Photographs
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Loic Venance/AFP by way of Getty Photographs
Bob Iger, CEO of The Walt Disney Firm, arrives for the screening of Indiana Jones and the Dial of Future on the Cannes Movie Pageant on Might 18, 2023.
Loic Venance/AFP by way of Getty Photographs
6. Bob Iger’s Mouse Home: There’s been talk {that a} tech big like Apple would possibly purchase Disney. Iger just about dismissed the thought as pure hypothesis. “It is not one thing we obsess about,” he stated.
In November 2022, Iger got here out of retirement to assist put the Mouse Home again collectively once more after some reported missteps by former CEO Bob Chapek. Iger was supposed to remain for 2 years. However Disney’s board not too long ago voted unanimously to extend his contract by means of Dec. 31, 2026.
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