Disney Posts a Loss for the First Time in 20 Years
Art and Experience: Disney has been arguably the most successful movie studio of the last 50 years, but this year, it’s losing.
Disney is one of the most powerful entities in Hollywood. It controls Pixar, Star Wars, Marvel, Disney animation, ABC, ESPN, and a whole lot more. It has money coming in from almost every angle. But this year the king is losing money just like the rest of the serfs.
In fact, Disney lost $4.72 billion in the last 3 months ending June 27, with total revenue falling 42% to $11.8 billion.
To put that into perspective, at this time last year, the company earned a profit of $1.43 billion in the same quarter.
Obviously, pushing releases like Black Widow and Mulan changed the fate of the company. The coronavirus halting theatrical hit everyone hard, but the company may gain some ground back with Mulan releasing digitally.
This money also takes into account park sales, which have been dormant.
There is some good news, though. In less than 9 months, Disney+ has passed 60 million subscribers—a milestone Netflix took around 8 years to reach. Families are turning to the service to entertain them in these trying times, and Disney is being rewarded.
Still, this comes on the heels of Disney’s 20 years of dominance. The company’s last quarterly loss came in early 2001, according to Factset Data. It amounted to $567 million.
As Disney goes, so does the rest of Hollywood. This is going to be a tough year full of depressing numbers. We are seeing jobs cut throughout an industry that is truly suffering. Hopefully, the vaccine comes soon and we’ll have a boom of entertainment and things being made.
I’d love to see the spec market come back as well.
Only time will tell if Disney and the rest of the town bounce back in 2021.