Disney will hold a virtual investor day on December 10 to further expand its direct-to-consumer plans. Some investors expect Disney to use the session to more clearly declare in sports streaming. “We’re going to put a lot of wind in the sails of our Disney + business,” Mr. Chapek said at the conference call.
Mr. Chapek, who Took over as Disney’s chief executive In February, recently Restructured the company To push streaming closer to the heart of Disney. The new setup involves splitting Disney’s television operation into two divisions – one on content creation (with a primary focus on content for streaming) and another on distribution (with full monitoring of profits and losses). How this will work is still unclear, at least to those outside the company, but the logic is clear: the traditional TV business is sputtering. A large number of new cost-conscious consumers are canceling their cable and satellite service, pressuring ad sales and subscriber fees. Many people have switched to a la carte streaming options; For example, Disney + has made the Disney Channel irrelevant for many families.
Mr Chapek said his reorganization was going well. “Despite the disruption of everyone’s roles, we have 100 percent horse-trading,” he said.
Disney Media Network, a division comprising ESPN And the ABC was helped by the epidemic, at least from a fiscal standpoint, as a production shutdown and later a shift of college football games to quarters cost less on ABC. Disney’s fiscal reporting structure benefited from additional ad sales this quarter. The division generated operating profit of approximately $ 1.86 billion, an increase of 5 percent from a year earlier.
This was another brutal period for Disney’s theme parks and consumer products division, where operating profit was $ 2.5 billion, resulting in a loss of $ 1.1 billion. Walt Disney World in Florida reopened in July with limited capacity, but other key properties, including Disney Cruise Line, remain closed due to coronavirus.
Mr Chapek said Disney World, which reopened at 25 percent capacity, recently lifted the ban to 35 percent “while still following the guidelines set by the CDC for six-foot social distances is.” Reservations for Thanksgiving week, Disney’s Chief Financial Officer Christine M. said on the conference call. Are “almost at capacity” for McCarthy.
Disney’s theme parks have long been seen as bellwalls for the broader economy. It is unclear whether the public – now reeling from pay cuts and job losses – will be able to afford a Disney vacation when the gates fully open. It took two years for Disney’s parks division to fully recover from the last recession.