Disney’s growing film business
The Walt Disney Company’s (DIS) film business has been doing very well on the back of its blockbuster releases. In the fiscal third quarter, the success of blockbuster movies Avengers: Infinity War and Incredibles 2 drove the company’s Studio Entertainment segment revenues by a whopping 20% YoY.
Earlier releases such as Black Panther and Solo: A Star Wars Story contributed to the Studio segment’s revenues in the quarter. In the fiscal third quarter of 2017, the company’s successful releases included Guardians of the Galaxy Vol. 2 and Cars 3.
Avengers: Infinity Wars had the best opening weekend of all time and crossed $1.0 billion in a mere 11 days at the box office—faster than any previous film release. The movie grossed more than $2.0 billion globally in the box office, making it Marvel’s highest grossing film of all time. Incredibles 2 was the top domestic grossing animated film and has generated over $1.0 billion worldwide in the box office as of August 7.
In 2019, Disney expects to release Star Wars: Episode IX, Captain Marvel, Dumbo, Avengers 4, Toy Story 4, The Lion King, Jungle Cruise, and Frozen 2. The launch of Disney branded direct-to-consumer service in late 2019 is expected to be a success due to Disney’s blockbuster movie content.
The 21st Century Fox (FOXA) acquisition is expected to give Disney access to 20th Century Fox Films and expand its iconic movie franchises such as Avatar, Marvel’s X-Men, The Fantastic Four, Deadpool, Planet of the Apes, and Kingsman.
Box office report
According to Box Office Mojo, Disney’s Buena Vista Pictures topped the domestic box office with a 34.8% market share. Comcast’s (CMCSA) Universal Studios, Warner Bros., 20th Century Fox, and Sony/Columbia (SNE) had market shares of 13.8%, 10.2%, 9.8%, and 9.2%, respectively, on a year-to-date basis on August 5.