Report: Disney just revealed how much it’s been hurt by COVID-19
Disney’s third quarter earnings report revealed the company has taken a hit as theme parks have been closed and movies delayed, with revenues falling by 40 percent
Disney revealed today just how much of a toll the COVID-19 pandemic has had on its revenues in its third quarter earnings report for 2020.
With many of its theme parks closed due to the pandemic — not to mention that big theatrical releases like “Mulan” and “Black Widow” have been postponed — it was a rough quarter for Disney, according to Variety.
The company’s revenues fell 40% to $11.7 billion, Variety reported. Much of the current revenue comes from streaming services, and the steep decline has to do with theme park closures — responsible for a $3.5 billion decline in operating income and a $2 billion loss.
Disney’s lack of new movie releases has also caused some harm, according to The Verge. The Disney studio earned $3.8 billion during the same time frame in 2019, due to releases like “Avengers: Endgame” and “Aladdin,” yet only earned $1.7 billion during this year’s third quarter.
A positive note for Disney is its streaming services. The company said it has 100 million paid subscribers to Disney Plus, Hulu and ESPN Plus, according to CNBC.
ESPN has taken a hit in both programming and advertising over the last few months, as professional sports teams are only just beginning to play again, according to Variety.
However, Disney Plus — which launched less than a year ago — has grown to 57.5 million subscribers, CNBC reported.
The filmed version of “Hamilton,” which debuted in early July on Disney Plus, brought an influx of new subscribers to the streaming service, as the Deseret News previously reported.
“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” said Disney CEO Bob Chapek, according to The Verge.
He also called the Disney’s streaming services “key to the future growth of our company.”