Brexit impact on Disney?
Brexit could have a strong impact on The Walt Disney Company’s (DIS) theme parks. According to data from the Visit Florida website, around 11.2 million international visitors, excluding Canadians, visited Florida in 2015. Brexit could mean a decline in the inflow of tourists at the company’s theme parks in the US.
This could translate to lower per capita guest spending at the company’s theme parks. It could also be impacted negatively due to the fall of the pound against the dollar (UUP).
Brexit could also impact Disney’s movies at global box offices, especially in Europe and the United Kingdom. Brexit not only resulted in the weakening of the pound but also the euro against the US dollar. The euro has fallen 1.2% against the US dollar in the past month.
Disney in the United Kingdom
Disney launched its direct-to-consumer offering, DisneyLife, in the United Kingdom (EWU) last year for around $14 per month. At a Deutsche Bank (DB) investor conference in March this year, the company stated that it has seen a good response to DisneyLife in the United Kingdom, primarily for movies and TV shows available through its over-the-top service.
Disney also entered into a partnership with Alibaba (BABA) to launch DisneyLife in China (FXI). Viacom (VIAB), another US-based media company, launched Noggin in Latin America—a mobile streaming subscription service targeted towards kids.