Lack of Blockbusters Dented Disney’s Q1 Studio Revenue



Disney’s Studio Entertainment revenue

The Walt Disney Company’s (DIS) Studio Entertainment revenue fell 27% YoY (year-over-year) to $1.8 billion in the first quarter of fiscal 2019, while its operating income plummeted 63% YoY to $309 million.

Though the company posted improvements in its TV subscription video on demand distribution, a sluggish theatrical business led to a revenue fall in the Studio Entertainment segment. The absence of a Star Wars movie in December 2018 dented the company’s movie business in the quarter. The last Star Wars movie was Solo: A Star Wars Story, which was released in May 2018, unlike the newest Star Wars trilogy films, which were released in the previous two Decembers.

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The movie business

The movie business largely depends on box office hits and the timing of movie releases. In the first quarter of fiscal 2019, Disney released films such as Mary Poppins ReturnsRalph Breaks the Internet, and The Nutcracker and the Four Realms, but it couldn’t match the strong line-up of Star Wars: The Last Jedi and Thor: Ragnarok in the first quarter of fiscal 2018, so the Studio Entertainment segment took a hit.

Disney released Coco, Thor: Ragnarok, and Star Wars: The Last Jedi in 2017, which together earned more than $1 billion in the United States, according to data extracted from Comscore and published by CNBC. Its latest movies The Nutcracker and the Four Realms, Ralph Breaks the Internet, and Mary Poppins Returns together earned only $388 million.

Box office report

According to Box Office Mojo, AT&T’s (T) Warner Bros. has topped the domestic box office with a market share of 21.5% year-to-date as of February 10. Sony/Columbia (SNE), Comcast’s (CMCSA) Universal Studios, and STX Entertainment have market shares of 18.1%, 13.2%, and 9.9%, respectively, as of the same date. Disney’s Buena Vista Pictures is in fifth place in the box office with a market share of 8.2%.


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