Various” internet analyses” have been conducted in recent weeks to determine whether Disney has actually lost money on the majority of its great tentpoles films, including Marvel. Hollywood accounting is a complex subject best left to FBI agents and mob accountants. All movies lose money when they are made on paper, so determining whether movies that make billions of dollars( and also blow through millions ) are losing or winning is a game for mugs. After some movies really crashed and burned, there has been an estimated$ 900 million in summer losses, but some people have access to the information and a lot of forensic accounting to determine the actual numbers. However, CEO Bob Iger has persuaded Disney shareholders that Disney+’ s profits and losses( which has been losing a lot of money ) and even its films don’t matter because the films are actually bloating up profits in its theme parks. What theme parks are there? ( They aren’t located in Florida. ) Disney announced in a securities filing on Tuesday that it intends to roughly double its investments in its well-known theme parks and cruise line.
Why it matters: For years, Disney’s streaming losses have been partially offset by profits from theme parks.
Disney emphasized how its parks, experiences, and resorts segment has persistently seen revenue growth thanks to significant traditional investments in its intellectual property.
It emphasized the value of its investments in franchises like” Star Wars ,”” Toy Story ,” and” Cars” over the previous 20 years.
Disney’s revenue for parks, experiences, and products increased by 13 % last quarter, primarily as a result of better performance at its international parks and resorts.
Lower operating income came from the company’s home parks last quarter due to a decline in guest attendance at the Walt Disney World Resort in Florida and higher costs. Disney is rumored to be considering selling ABC. Iger is promoting Disney as a resort and theme park operator that invests$ 30 billion in content to entice visitors from other countries. As far as business models go, this one is really crazy. However, I have no doubt that once Disney brings Wakanda to life, the profits will be tremendous. Shares of Disney closed on Monday at$ 85. In 2021, they cost$ 197.
Disney Parks, Experiences and Products chairman Josh D’Amaro declined to say how the business intended to use the$ 60 billion. However, he dropped hints, noting that Disney films like” Coco ,”” Zootopia ,” and” Encanto ,” among others, had not yet been meaningfully integrated into the company’s parks.
He said, referring to the made-up” Black Panther” kingdom,” Imagine bringing Wakanda to life.” Only picture. In Shanghai, Tokyo, and Paris, they’ll adore that. Moreover, Hong Kong.
In recent weeks, there have been a number of ‘internet analysis’ on whether Disney has lost money with most of its tentpole movies including Marvel. Hollywood accounting is a science best left up to mob accountants or FBI agents. It’s impossible to tell if movies that make or lose billions of dollars on paper are actually losing money. They’re not located in Florida. Disney plans to almost double its investments in the popular theme parks and cruise lines, the company announced in a Tuesday securities filing.
Why it matters: Disney’s streaming losses have been offset by profits from theme parks for years.
Disney stated that its strong historical investments in intellectual property have helped it to consistently grow its revenues at its parks and experiences segment.
It highlighted its investment in franchises like “Star Wars,” Toy Story” and Cars over the past two decades.
Disney’s parks and experiences revenues increased by 13% in the last quarter, largely due to its international parks and resorts.
Disney is considering selling ABC. Iger is pitching Disney to foreigners as a theme park and resort company that spends $30 Billion on content. This business model is a bit crazy. But I’m certain that once Disney brings Wakanda into reality, the profits will become enormous. Disney shares closed Monday at $85. They were $197 in 2021.
Josh D’Amaro, Chairman of Disney Parks, Experiences and Products, refused to reveal how the company intended to spend $60 billion. He did give hints by pointing out that Disney movies such as “Coco,” ‘Zootopia,” and “Encanto”, among others, had not yet been integrated into the company parks in meaningful ways.
Imagine bringing Wakanda, the fictional kingdom of “Black Panther”, to life. Shanghai, Tokyo and Paris will love it. Also Hong Kong.
