wordpress blog stats
Connect with us

Hi, what are you looking for?

,

Disney’s streaming services and sports are its key to surviving the pandemic

The Walt Disney Company’s success in pulling through the COVID-19 pandemic may just depend on its success in hawking its digital subscriptions to customers. Disney+, Hulu, ESPN, and Hotstar will bring in more revenue to the entertainment giant than any shuttered theme park ever could. Productions are stalled too, so Disney will have to lean heavily on its decades-long catalogue of content. Until this year 37% of Disney’s money came from theme parks and products. That number is likely to change dramatically in the coming months.

  • Disney would rather wait for big movies to release in theatres: Universal had great success releasing its film Trolls World Tour online, with over $95 million in rental fees on services like iTunes. But Disney would rather not go down that route for the most part. “So we’re going to evaluate each one of our movies on a case-by-case situation as we are doing right now during this coronavirus situation. I think you know that Artemis Fowl is moving over to Disney+ given the demographics of appeal of that film, which was not originally the plan. But all our other Temple movies have been rescheduled theatrically for later in the year. So we very much believe in the power of that launch platform for our big movies,” Walt Disney Company CEO Bob Chapek said.
  • Sports’ conversion conversion to digital is key: Chapek said that sports will be key to helping the company survive.  “And we’re going to do that, though, as we always have done in a very disciplined manner. Existing consumer trends play a real big part on how we think about the value of sports rights as they make the transition from linear over to digital. And I think it really – it’s a bit premature to give any specific details on what the strategy is other than we’re obviously highly interested in those and we think we want to make the evolution along with the consumer as they go from linear to digital,” he said. This, of course, will depend on increased subscriber revenue, as ad sales have reduced considerably, This also depends on when big sporting events, like the NFL and IPL.
  • Disney+’s wild success will help the company: Disney+ expected 60–90 million new subscribers by 2024. They have 54 million already, per its earnings report. That is beyond the wildest expectations of analysts and even Disney itself. That factor alone could make Disney+ that much more important to Disney weathering this pandemic long enough to get most of its businesses operating again.

Q2-FY20 Disney (ended March 28, 2020)

Revenue: $18 billion (21% growth)
Net income from continuing operations: $475 million (down by 91%)
Free cash flow: $1.9 billion

*

Press Release and Results | Earnings Call Transcript

Advertisement. Scroll to continue reading.
Written By

I cover the digital content ecosystem and telecom for MediaNama.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India and US come to terms on how to deal with the equalisation levy in light of the impending Global Tax Deal.

News

Find out how people’s health data is understood to have value and who can benefit from that value.

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ