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The Outlook for Disney’s Studio Entertainment Segment

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Disney’s movie moves

On April 25, 2017, the Hollywood Reporter reported that in 2019, The Walt Disney Company (DIS) and Lucasfilm will release Star Wars: Episode IX. The report also said that Disney pushed back the release of the new Indiana Jones movie to 2020, and The Lion King and Frozen 2 will release in 2019.

However, it remains to be seen whether Disney’s television and film production will take a hit as a result of the recent strike authorized by the Writers Guild of America. On April 24, 2017, Variety reported that about 96.0% of the Writers Guild of America members had voted in favor of the strike. A writers’ strike could result in work stoppage for television and movie production studios such as Disney Studios and could result in revenue losses.

Other Disney movies that will be released this year include Marvel’s Guardians of the Galaxy Vol. 2, Thor: Ragnarok, Pirates of the Caribbean: Dead Men Tell No Tales, Pixar’s Cars 3, and Coco.

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Disney’s franchise-focused strategy

Disney’s franchise-focused strategy has been a key driver of its success. After the acquisition of Pixar in 2006, Disney produced around 30 movies under that studio. According to Disney, its movies from Pixar, Lucasfilm, and Marvel Universe together have brought in ~$800.0 million at the global box office.

The company expects its Studio Entertainment business to be a strong growth driver in fiscal 2018 due to a robust movie slate. However, it expects Studio Entertainment’s performance in fiscal 2017 to face a difficult comparison with fiscal 2016 due to the strong performance of Star Wars: The Force Awakens.

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