Sarcastic as all get out. Bragging rights.
Titles like "The Little Mermaid " and "Guardians of the Galaxy " havenât been able to deliver the expected results, adding to Disneyâs economic woes. In fact, two of their recent films, "Strange World " and âLightyear ,â were outright flopsâŚ
âOne of the things that we always talk about here, that is the perfect time to remind everybody, is that Disney consumes all of its own content post-theatrical.â This means that Disney no longer licenses their content, like the Marvel Cinematic Universe, to third-party platforms such as Netflix. As a result, they have lost out on billions of dollarsâ worth of potential revenue from these contracts.
DB2
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In the theater perhaps, on stream and DVD not necessarily. Your source is nonsense.
Ya still have to have content people want to pay to see. For now we read that
Disney said on Wednesday that losses in its streaming business for the most recent quarter totaled $659 millionâŚ
DB2
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Bob,
You are funny. The losses narrowed. That is part of building a business. That does not mean people do not want the content.
The DVD business is less now but you are not including that or the repeat viewings years out.
That is one of the big challenges for Disney. Currently, however, it is an albatross.
I donât understand. You seem to be saying that people will suddenly want to watch what they havenât wanted. Remember, Disney lost almost a billion dollars on its last eight movies.
DB2
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No I am saying there are other channels and later dates to watch it.
It is a big buzz in conservative circles that Disneyâs movies have âlostâ X-amount of dollars lately. Thatâs true of almost all movies, films rarely recoup at the box office. (There are some which are huge blockbusters and do, but thatâs the exception.) The reality is more complicated. Studios usually make up for these losses in other windows: pay TV (HBO, Showtime), commercial TV, hotel/airplane TV, syndication, commercial exhibition (ABC, local stations), DVD sales, and so on.
Unlike first run, where the studio splits the house take roughly 50/50 (more, sometimes less depending on the property) with local theaters, what the studio gets from other windows is generally all theirs. Disney has chosen to forgo some of that revenue (Netflix, etc.) in favor of building their own streaming library with exclusive rights. Whether that decision ultimatelyi pays off remains to be seen, but frankly Disney seems the only one of the Big 4 that has a reasonable chance of building such a business into the future. (Peacock? Paramount Plus? Really?)
I note that almost all the negative buzz is coming from sites complaining about âwokeâ or other imagined slights, almost none who have any business insight into Disneyâs real business. It may be true, but Iâd put money on the Mouse House before Iâd give it to any of the other pretenders.
(I could make a good business case for Paramount to buy CNN from Discovery; clearly Zazlav has no idea what to do with it, and Paramount (Plus) could integrate it with CBS news both for cost reduction and as an attraction to the streamers who have cut the cord.)
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I love being woke.
I hope a few other people wake up.
Some people need to get out of bed still.
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Studios usually make up for these losses in other windows: pay TV (HBO, Showtime), commercial TV, hotel/airplane TV, syndication, commercial exhibition (ABC, local stations), DVD sales, and so on.
Not the 200 to 300 hundred million for production, and an equal amount for marketing. That can only be monetized during a brief window of hype following opening. Years later youâre competing with cooking shows that cost nothing to make. There is no way to recover the typical 500 to 600 million that Disney spendsâŚin any infinite number of years of streaming, post-exhibition window buzz.
Peacock?
Not a real company. However its owner, Comcast (CMCSA), as well as Netflix (NFLX) stocks are higher than they were 5 years ago. Unlike DIS.
My money is on Comcast. They make content, run theme parks (Universal Studios), (WHICH ARE EXPANDING), AND they extract ever higher cables fees, paid through the nose. They also play othersâ content, bought cheaply.
Looking at ABC and the Cable Networks inhouse and possibly out of houseâŚDisney might be making over $1 billion per year from older movies in reruns. Plus the movies are an attraction to see other Disney products.
Revenues from all of the products are around $86 billion. Merchandise, theme park ridesâŚother licensesâŚ
I get some here are biased. Like there is no hiding that. But really coming in with sort of fake guesses. Why come in here and knock a company for political reasons? We see it. We get it.
Revenue in 2023 (TTM): $86.98 B
According to Walt Disneyâs latest financial reports the companyâs current revenue (TTM) is $86.98 B. In 2022 the company made a revenue of $84.41 B an increase over the years 2021 revenue that were of $72.98 B.
Have you considered lobbying for a National Woke Week?
DB2
Thatâs certainly not true. I guarantee you that Spider-Man, Star Wars, Titantic, etc. are making more money in residual markets today than lesser known or remembered films made at the same time. Heck, some of those other films arenât even being recycled, or if they are theyâre in the (figurative) dollar bin as part of a bundle sold to Channel 93 for their overnight movie programming.
Sure there is. Disney is still making money from their original animation features from the 1930s-1950s. Some movies have an incredibly long shelf life. Most live and die in a couple years. Every time you see âRaiders of the Lost Arkâ, no matter where, somebodyâs being paid. Disney is choosing to hold its Crown Jewels close, hoping to build its Disney+ franchise. So theyâre forgoing rights payments from other platforms in order to (they hope) get subscription dollars from the populace. Different strategy, results to be seen.
Comcast, I suspect is highly vulnerable to cord cutters, (so is Disney) as more than half their revenue comes from the cable franchise. They will get a little of that back via âhard wire connectivityâ, but lose the profits from carrying othersâ networks and charging a premium for it. Iâm also not terribly impressed with their ability to create content; their Today and Tonight show franchises have been coasting for years, their prime time is dross, daytime a joke. Their cable networks are mostly already running endless hours of cheap stuff, itâs hard to see how they go any cheaper, and harder to see how that stuff ages well for a streaming library five years from now.
The theme parks seem solid (then again, so do Disneyâs), but Iâm less sanguine about the entire company five year out thanks to the continuing evaporation of two of their segments: broadcast and cable.
Netflix still has some run room, and will likely get a bump from their âsharingâ crackdown. If they can continue to execute on the creative side theyâll do very well going forward. They certainly are positioned for it.
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The devil is in the details. Actually Thor4, Black Panther 2, and Guardians of the Galaxy 3 each have box office totals of about $800M (and counting) so are profitable. Even The Little Mermaid remake broke even. Thatâs all pretty good considering Thor 4 was banned in China for LGTBQ scenes and The Little Mermaid flopped in China because Arielâs skin color was a bit too dark for local tastes. I suspect much the same happened in certain states in the US. Is that Disney being too woke or a lot of people being racist and sexually insecure?
I think Disney did well with the Marvel films. Anyone notice how the The Flash has so far tanked at the box office? It will struggle to reach $300M globally. There is super hero fatigue. One should evaluate Disneyâs Marvel films performances in that context.
The Disney movies that lost all that dough are the Pixar animation films. Most analysts believe this is because most families are simply waiting to watch these type of films on Disney+.
This may be a hint of things to come. People may only be willing to go to movie theaters to watch the big blockbusters where a big screen matters. Saves a lot of time and effort to wait a couple of months and watch the smaller movies at home. This is especially true for kid movies. Family night at the cinema is pretty expensive these days to watch a movie only your 8 year old is enjoying.
I guess it is more than just a hint. The Streamers are spending lots to make high quality movies that go straight to their streaming library. The movie theaters are increasingly limited to big budget remakes.
The film industry is currently being disrupted and is in the process of figuring out the right business model. I have no doubt Disney will figure out how to balance film box office revenues with the needs of streaming.
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Theyâre also vulnerable on their internet side of the business. The competition hasnât given up, around here, AT&T has been digging up and installing fiber in neighborhood after neighborhood and eventually blanketing the area. They did my development a few months ago ⌠that, despite our HOA having a contract with Comcast/xFinity right now. Next time the contract comes up for renewal, you can bet there will be a bidding war of sorts.
I think there is a different issue for all the media companies, Disney, Comcast, Paramount, etc. I think the issue is media saturation. There is so much availability of media, and there are only so many hours in a day, and the people have already increased the number of hours they devote to media, that perhaps there isnât much more growth available to tap. Now itâs down to mostly competition for existing eyeball-hours.
Why come in here and knock a company for political reasons? We see it. We get it.
You are painting with the sort of brush people only use on the exterior of barns.
Sorry To Bother You was brilliant (have you seen it?).
So was Parasite.
Our Man in Havana had one plot element that was shown by history to be exactly wrong, but it doesnât matter because itâs such a great story.
It took ONLY a second to come up with movies, with left-wing themes, that are smarter than anything Disney has EVER made.
Iâll take âpeople being racist and sexually insecureâ for $10,000, Alex.
Sorry, but this whole woke thing is just soooooo stupid. Itâs the 2023 version of the War on Christmas (amazing how Christmas managed to survive an imaginary assault). People creating fake cultural wedge issues faster than Penn & Teller do French Drops.
I guess when you donât have anything to offer that actually helps people, well âŚâŚâŚ SQUIRREL!!!
Next thing you some genius will come up with the idea to abolish the IRS.
Man, Ron White nailed it.
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Yep - but until these instigators actually do go broke underestimating the intelligence of the American people, such memes are likely to continue.
Pete
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âbut this whole woke thing is just soooooo stupidâ
Anytime I hear someone speaking of the âwokeâ problem America has, I instantly tune them out. All of the problems this country has staring it in the face, and they want to waste energy on culture war issues like âwokeâ. No dice for me, and quite a few others that I know.
I am willing to listen to both sides of the aisle debating any plans that they have. I was so angry with 1 side after Jan 6th, that I totally wrote them off for awhile. But USA needs a functioning 2 party system. Iâm trying to be hopeful that we can get back there.
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