Now, before you start throwing Disney a pity party, the corporation as a whole still earned around $18 billion in revenue during their second quarter — which is, a little more than I have in my pocket right now. But even that figure comes a lot lower than their normal revenue earnings. And their Parks, Experiences and Products segment plays a huge part in these losses. As said, that segment lost the company $1 billion in revenue. Their total revenue loss in Quarter 2? $1.4 billion, “primarily due to revenue lost as a result of the closures.” This means that their theme parks make up 71% of their losses this last quarter — a remarkable look into how important they are to Disney’s overall economic practice
The earnings report came out just as both California and Florida, homes of Disneyland and Disney World, respectively, begin to reopen their economies. Florida is considering a staggered approach to reopening large theme parks with new social distancing guidelines in line with the federal government.
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| Disney+ streaming service |
One saving grace for the conglomerate remains the Disney+ streaming service, which expanded operations into Europe and India and has now garnered 54.5 million subscribers worldwide.
Speaking of streaming, while Disney reaffirmed its commitment and love of the theatrical film going experience, they also reiterated that they will pivot some movies once earmarked for cinemas to digital instead.
"We also believe that either because of changing and evolving consumer dynamics or because of certain situations like COVID, we may have to make some changes to that overall strategy," said Disney CEO Bob Chapek.
"We’re going to evaluate each of our movies as a case-by-case situation, as we are doing during this corona virus situation.”
Some analysts speculated the Disney theme parks would not open until 2021. However, despite the problems with Disney's American theme parks, Shanghai Disneyland will reopen on May 11. However, the park is only expected to operate at 30 percent capacity.
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