Disney’s studio revenue
In the fourth quarter of fiscal 2018, the Walt Disney Company’s (DIS) studio revenue rose more than 50% YoY (year-over-year) to $2.2 billion. Its operating income rose more than 100% YoY to $596 million.
The growth came mainly from the company’s worldwide theatrical business. Improved growth in TV SVOD (subscription video on demand) distributions and home entertainment also added to the segment’s growth. For the year, the Studio Entertainment segment generated $3 billion in operating income, higher than the $2.7 billion goal it set in fiscal 2016.
The massive success of movies such as Incredibles 2 and Ant-Man and the Wasp led to the whopping increase in Disney’s worldwide theatrical business in the quarter. Blockbuster movies such as Black Panther, Star Wars: The Last Jedi, and Avengers: Infinity War contributed to this growth. In comparison, the company had only Cars 3 with no Marvel movie to drive its fourth quarter last year.
The Incredibles 2, which came out in June, reportedly earned more than $600 million at the box office by September 2, making it the third Disney movie in 2018 after Avengers: Infinity War and Black Panther to hit the record. According to Box Office Mojo, Incredibles 2 passed the $1 billion milestone in July and had made $1.16 billion globally as of September 2. The movie became the second-highest-grossing animated film after 2013’s Frozen, which earned ~$1.27 billion.
Avengers: Infinity War crossed the $1 billion mark just 11 days after its release, and it grossed more than $2 billion globally in the box office by June, making it Marvel’s highest-grossing film of all time.
In 2019, Disney expects to release new films that include Star Wars: Episode IX, Captain Marvel, Dumbo, Avengers 4, Aladdin, Toy Story 4, The Lion King, Artemis Fowl, Jungle Cruise, and Frozen 2. The company’s 21st Century Fox (FOXA) acquisition is expected to give it access to 20th Century Fox Film and expand its iconic movie franchises, including Avatar, Marvel’s X-Men, The Fantastic Four, Deadpool, Planet of the Apes, Kingsman, and others.
Box office report
According to Box Office Mojo, Disney’s Buena Vista Pictures tops the domestic box office with a 28% market share. AT&T’s (T) Warner Bros., Comcast’s (CMCSA) Universal Studios, Sony/Columbia (SNE), and 20th Century Fox had market shares of 14.7%, 14.4%, 11.2%, and 9.0%, respectively, on a year-to-date basis as of November 4.