Bad news for the Disney group: the company, which operates amusement parks, among others, suffered heavy losses due to the Corona crisis. The Disney + streaming service is booming.
The corona pandemic has plunged the American entertainment giant Walt Disney into the red. In the three months leading up to the end of June, the net result was a loss of 4.7 billion US dollars (4.0 billion euros), as the company announced.
A year ago, net income was $ 1.8 billion and income from continuing operations was $ 1.4 billion. Revenue fell 42% to $ 11.8 billion.
Disney boss Bob Chapek spoke of the ongoing challenges, but also the “incredible success” of the Disney + streaming service. The video service, which launched last November, already had 60.5 million subscribers as of Monday, Chapek said.
Mulan doesn’t come to the movies – he comes to Disney +
In order to gain additional customers, the new edition of the fairy tale “Mulan”, postponed several times in the cinema, will be broadcast on Disney + – but at a high price of just under $ 30.
The rapid growth of the streaming business is not paying off for Disney anyway – at least not in money. The division has so far been in high deficit and the Boom has also been bought at bargain prices and offers free decoys to many US customers of internet provider Verizon Fios. It remains to be seen whether Disney will be able to keep streaming market leader Netflix up to date – which was also in higher demand than ever during the corona lockdown.
Disney’s business with theme parks, resorts and cruises suffered greatly during the crisis and was in deep disrepair. Revenue fell 85 percent year over year and operating losses were just under $ 2 billion.
In the meantime, Disney attractions are mostly reopened, but with strict corona requirements and due to ongoing virus concerns in the United States with uncertain prospects.