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Disney’s Franchise-Focused Strategy Is Working at the Box Office

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Disney’s franchise-focused strategy is working at the box office

The Walt Disney Company’s (DIS) franchise-focused strategy seems to be resulting in solid dividends. In fiscal 2017 so far, Disney’s movies—including Rogue One: A Star Wars Story and Beauty and the Beast—have already earned $1 billion at the global box office.

The company’s Marvel’s Guardians of the Galaxy Volume 2 has earned $156 million at the US (SPY) box office so far and $456 million at the global box office to date. Other Disney movies that will be released this year include Thor: Ragnarok, Pirates of the Caribbean: Dead Men Tell No Tales, Pixar’s Cars 3, and Coco.

Disney has also pushed back some of its movie releases. It will release Star Wars: Episode IX in 2019 and the new Indiana Jones movie in 2020. The Lion King and Frozen 2 will release in 2019.

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

Disney’s Studio Entertainment segment in fiscal 2Q17

In fiscal 2Q17, Disney’s Studio Entertainment revenues fell 1% to $2.0 billion while this business saw its operating income rise 21% to $656 million. The higher operating income resulted from increased distribution for movies on television, SVOD (subscription video on demand) services, and in the home entertainment business.

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