Disney Takes $6.3 Billion Loss
Business models are changing, revenue streams are disrupted, and the world is on pause. It is evident the Coronavirus has shaken up the modern world but for Disney, it meant losing $6.3 billion in revenue. Quarterly revenue has dropped 40%, $3.5 billion of which came from the closure of Disney Parks. These sobering figures were nothing short of shocking. Wall Street was expecting Disney’s earnings per share (EPS) to be somewhere around $0.64 but instead, Disney reported a staggeringly-low $0.08. As a result, the stock climbed nearly 9% the day of earnings release. Disney is one of the hardest-hit entertainment companies but Disney+ proved to bring strong streaming revenues and popularity to the brand amidst the pandemic. Despite an increase in COVID-19 cases, Disney has started opening parks and releasing movies theatrically in select locations. In addition to the closure of parks and theaters, Disney productions paused filming. It is unclear if this will have a noticeable effect on Disney+ but theatrically, fewer Disney films are expected to be released.
In addition, ESPN, Disney’s sports media arm, has only just been able to start working again as the NBA has restarted their season in “the bubble.” It is clear the future of media is streaming and across Disney’s three streaming services, Disney+, Hulu, and ESPN+, they collectively have more than 100 million paying subscribers.