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NYT: Bob Iger Thought He Was Leaving on Top. Now, He’s Fighting for Disney’s Life.
- Thread starter Ryan.
- Start date
They do outside the US and Australia. Should have been more specific, my bad
Capitalism doesn't work that way. No company has enough in the bank to cover the immense amounts of revenue that Disney. Disney is going to be at the brink like a lot of companies are
Eh, Iger is more or less precisely the type of big boss you want in a situation like this. Boringly competent corporate manager with good financial instincts. This isn't a creativity problem, this is a "our entire business is being upended and we need a plan to deal with it now" thing.
It's also the exact type of situation Eisner would handle terribly.
Yes they are racking up their debt but I daresay the debtors won't feel like giving them some leeway on those debts is a big risk. They have the balance sheet to prove that a return to profitability is all but guaranteed when this is over. I guess it just depends how much trouble they get into.
I think compared to most of Disney's competitors, Disney is the most exposed in this pandemics. It is the only one that does not have another parent company such as Warners (AT&T), Dreamworks (NBC Universal?), Universal (NBC Universal), Sony Pictures (Sony) that have more business revenues less affected by the pandemic. Their only revenue stream right now is new Disney+ subscribers. They got a ton of Disney+ subscribers a few months back with steep discounts so those folks are locked in already.
I think this video did a pretty decent breakdowns:
- No hotels
- No cruise
- No theme parks
- No ESPN
- No film release sales
- No retail store sales
- No film production which means future film release sales will be delayed
- Continued Hulu ads sales (may be reduced due to advertisers)
- Continued Disney+ sales (but a good chunk of people are already locked in months ago. So must rely on new subs)
- Continued online retail sales (may be reduced due to people cutting back on non-essential purchases)
Mod Edit: We do not provide a platform for Grace Randolph or their content here
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I don't especially want Disney to fold, but...
I'm trying not to laugh at the bitter irony of equating companies going under with job loss when we're in a situation where the companies are going under because their entire workforce is laid off.
It's about 29% of their operating income based on the 2018 annual report, which is a lot more than I had expected. I thought parks and hospitality was a small portion of their business
And thousands losing their jobs because you think it's funny ? Wtf kind of drive by posting bullshit is this ? Lives depend on Disney surviving this terrible situation for people to get their jobs and income back and your first thought coming in here is ,, lets talk some shit "
terrible .
Their largest segment is media networks (does not include theatrical film production or distribution) which accounts for 40% of their revenue (in 2018).
edit: looks like this changed in 2019 where Parks is actually their largest revenue segment at 38% but has a smaller share than Media in operating income which has 50% share. Part of the reason for the increase seems to be consolidation of Product revenue (reported separately in 2018) under Parks in 2019.
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It depends which competitors you're talking about, and even then not really.
If it's Hollywood, then Disney's disproportionately fucked. Comcast, AT&T, and Sony will all weather this much better given they're all well diversified into industries not being as badly hit, whereas most of Disney's business has been in heavily impacted industries.
If it's theme parks, the smaller ones are all fucked, yeah, but again their biggest competitor (Comcast) will weather this much better as they rely on it faaar less. And don't forget that unlike the competition, Disney's parks division operates a cruise line, which is like the worst possible industry to be invested in right now.
If it's streaming, Disney's baaaarely gotten the ball rolling on D+, so it's basically a massive money pit that's about to run out of content, meaning they're on more or less the same page as the other new services, but Netflix will be fine. Hulu should be fine though.
Their other divisions are basically looking similar to their competition. But then since they have to carry the divisions that normally carried them, they're also disproportionately fucked, and if they were otherwise fine, are now being tied down by their siblings' billion-dollar losses.
Disney's worse off than any of the major players in any major industry they're in just when looking at general operations. And that's before considering the absolute fuck tons of money they've been spending. The Parks divisions has been sinking fortunes into several parks simultaneously, they're building insanely expensive new resorts, they just launched Disney+ and invested ungodly amounts into productions that are all frozen, and they took on tons of debt buying Fox. So this was basically the worst time for them to be hit too.
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No, because Disney's largest competitors are integrated telecom-entertainment companies. Disney doesn't sell people phone service or internet. They also operate massive resorts and a cruise line. It's not hard to see why covid-19 is more troublesome for Disney's business than it is to Comcast or AT&T.
disney getting into trouble would kill millions of jobs in entertainment worldwide. not just disney itself, most of the contractors, production companies, actors, stunt-people, vfx artists...and thats with disney scaling down, not closing.
the film industry would need to scale down heavily, because lets face it: movie theatres are not going to open within the next 2-6 months and if they do, they need to run at lower capacity (50% but probably closer to 35-40%). thats asuming, anyone would still want to set foot in a cinema until a vaccine is out.
the film industry would need to scale down heavily, because lets face it: movie theatres are not going to open within the next 2-6 months and if they do, they need to run at lower capacity (50% but probably closer to 35-40%). thats asuming, anyone would still want to set foot in a cinema until a vaccine is out.
When they do reopen, those parks are going to be packed.
Absolutely, it's not like when the crisis is over people will not go back, we are already counting the days for the next phase of the
MCU and our next trip to Disneyland. Our children will have amazing memories.
They were already overpacked before. They're at best still losing months of operations, which will have massive impacts. But sure, let's give further:
WHEN will they reopen? Unless they're reopening 2 years from now after a well-proliferated vaccine, they can't be "packed". They're going to need to implement strict capacity limits, some level of entry testing, and major social distancing policies within the parks that will drastically limit ride capacity/restaurant attendance/shopping, which will all raise costs and deeply cut income. And that's scratching the surface.
People can't keep pretending if we hold out another month or two a switch will flip and everything will be normal. Things will take upwards of years to start looking like they did before, and in many cases the old normal is literally gone forever. The theme park industry and Hollywood aren't going back to 2019. Ever.
Are they? This pandemic is going to mentally scar an entire generation of people. I foresee a massive drop in attendance for any sort of large gatherings be they theme parks or concerts, at the very least for the next few years until people are sure there is no threat anymore. And all of this is ignoring the fact that THERE IS GOING TO BE A DEPRESSION RESULTING FROM ALL THIS, which means even less people will be able to even afford to go to these parks even if they wanted to...
Yes they are. If people have the means they will go back. Especially In times like this.
I actually predict the opposite. People will be desperate to get back to "normal", and will act accordingly. The same things happened after SARS in multiple countries, there was a dip and then a relatively quick return to "normal" in affected sectors like tourism
This is much much much much much much much bigger then sars. It not even comparable
SARS didn't result in virtually every nation on the planet entering lockdown for several weeks. People are going to want to avoid having to do this EVER again. And part of that will be avoiding theme parks or virtually any place/entertainment venue where large numbers of people gather.
SARS had 8,000 documented cases.
COVID-19 is approaching 2,000,000.
COVID-19 has had 14 times more deaths alone than SARS had total documented infections and we're still at the beginning of this.
SARS was over in months , this will not be over until we have been vaccinated
I still believe the sentiments will be the same, or even heightened this time as people spend more time away from "normal". But I suppose only time will tell
I do agree with this, but once there is a vaccine people will be wanting to go out. I don't think there will be a generational "scar" like what the original post I quoted said
"if people have the means" is going to be a pretty big question mark for a while
I still don't think it will permanently cause an entire generation to turn away from gatherings, if it was actually like half a generational time to get the vaccine yeah I would say yes
By the time I get a lightsaber at Galaxy's Edge I'm gonna be an old crone.
The last night at Disney my son made a droid in galaxy's edge, I certainly hope that won't be his last trip for a few years.
"Studio Entertainment" is movies.
So not quite half, but a lot (like 40%).
Holy shit no idea.
I'm usually a negative Nancy, but man some of you are giving me a run for my money. I'm not saying it won't be rough going for awhile, but humans, for better or worse, are pretty good at bouncing back. It's just that I think you have to look at this thing from more than one side. We're looking at huge disruptions and a fair amount of deaths (that, admittedly, could be worse if we were doing less), but it also isn't going to wipe out humanity.
We're currently looking at 114,000 or so deaths. I know there will be many more, but that's a relative blip considering the 7.8 billion people on this planet. The Black Death killed tens to hundreds of millions.
Im glad this is making some of us re-examine the society we are in. Our global awareness both allows us to tackle things like pandemics in a more comprehensive manner, but it also easily lets us blow things out of proportions under constant mental assault.
COVID-19 has given us one hell of a case of whiplash, but it is not an extinction-level event by any means. People will find a way to return to normal (even if it is a new normal) and so will the businesses that make it through this.
Now if only we could get our shit together on climate change.
We're currently looking at 114,000 or so deaths. I know there will be many more, but that's a relative blip considering the 7.8 billion people on this planet. The Black Death killed tens to hundreds of millions.
Im glad this is making some of us re-examine the society we are in. Our global awareness both allows us to tackle things like pandemics in a more comprehensive manner, but it also easily lets us blow things out of proportions under constant mental assault.
COVID-19 has given us one hell of a case of whiplash, but it is not an extinction-level event by any means. People will find a way to return to normal (even if it is a new normal) and so will the businesses that make it through this.
Now if only we could get our shit together on climate change.
When you realize that Galaxy's Edge had the budget of four Star Wars movies, you begin to understand how much money is pouring through these parks. And that's just the costs for the opening day incarnation at the California park.
My logic for my prediction regarding this pandemic in particular is not that we are good at bouncing back, but that we are moving much too fast these days to dwell on the past
Just so you know, Grace Randolph is a banned source here and you should remove that video.
That is our current reality. Disney isnt bring in any money and wont be for awhile.
I'm bummed because I haven't been to Disney Land since I was five. I was planning on going for my 24th birthday, but now that's out of the question.
Would Disney releasing all their new films as direct to buy movies via streaming services for let us say 20$ would that help against the missing theater money?
I mean they could rerelease all other movies later for a cinema run and peopke would still come for the marvel/star wars movies.
I mean they could rerelease all other movies later for a cinema run and peopke would still come for the marvel/star wars movies.
an emergency fund for a pandemic that will kill most of your revenue stream and have you bleeding 1 billion per month? thats no exactly something you prepare for.
This outbreak is a totally unique world wide event and not a couple bad years with fewer people seeing the movies and going into the parks.
The income from parks and movies went to 0 in a few weeks.
That's nothing anyone is prepared for except Preppers.
Yeah. I know hindsight plays into this, but i do find it strange that disney never diversified to have a core business that could survive no matter the state of the market.
but hell i guess theythought that even during something like a recession that people would still see movies, rich peoplewould still go to the parks etc
nobody could have predicted an event that would literally shut down all of there stuff in one go
