SAN FRANCISCO – The Walt Disney Company yesterday said it is seeing “encouraging signs of recovery” across a wide range of its businesses, while its streaming television service grew slower than expected in the recently ended quarter.
TV streaming service Disney+ ended the quarter with nearly 104 million subscribers, fewer than expected, but still part of a stable of “direct-to-consumer” services that saw audiences swell as people turned to the internet for entertainment because of the Covid-19 pandemic.
Disney said it is seeing positive signs across its operations including parks, cruises and resorts, which took the hardest hit from the coronavirus.
“We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations,” said chief executive Bob Chapek in the earnings release.
“This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services.”
Disney held firm to its target of reaching 230 million to 260 million subscribers by 2024.
“Disney+ has been a major success for the company. However, growth is significantly decelerating as the initial pandemic boost has waned,” said eMarketer analyst Eric Haggstrom.
Executives on the earnings call said show production is returning to full levels as the company continues to invest in new content for its streaming services, as well as theatrical releases.
The entertainment titan’s franchises include Disney, Marvel, Pixar and Star Wars.
Disney also owns ESPN, Hulu and Hotstar.
“Hulu remains one of the market leaders in streaming video advertising,” said Haggstrom.
“Hulu has become one of the crown jewels in Disney’s massive video ad business, alongside ABC and ESPN.”
La Liga on display
United States sports broadcasting giant ESPN has acquired television rights for Spain’s La Liga in a record deal worth US$1.4 billion (RM5.78 billion) over the next eight seasons, starting from the 2021-22 campaign, said the firm yesterday.
A statement from ESPN said all La Liga games each season will be available live through its streaming platform ESPN+, with selected games on its traditional networks.
The value of the agreement was not officially disclosed, but a source with knowledge of the deal confirmed to AFP that it is worth US$1.4 billion, or US$175 million for each of the eight seasons covered.
“This deal bolsters ESPN+’s position as a top destination for football in the US,” said Chapek.
Maskless Mickey?
A relaxing of mask-wearing mandates by US officials yesterday was welcomed as good news for Disney parks.
The Centres for Disease Control and Prevention (CDC) removed mask requirements for people who are fully vaccinated against Covid-19, a watershed moment in the pandemic that comes more than a year after the federal government recommended that people cover their faces in public.
“Today’s guidance from CDC... is very big news for us,” said Chapek.
“Particularly if anybody has been in Florida in the middle of summer with a mask on – that could be quite daunting.”
Disney’s parks and resorts are likely to take several years to return to pre-pandemic attendance levels, according to Third Bridge senior analyst Joe McCormack.
Disney reported a revenue of US$15.6 billion, down 13% from the same period a year earlier.
Net income for the company was reported at US$901 million.
Shares in the Los Angeles-based entertainment giant were down 4% in after-market trades that followed the release of the earnings figures. – AFP, May 14, 2021
