November 25, 2020

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The crisis causes Disney to lose its first year in over 40 years

The crisis causes Disney to lose its first year in over 40 years

Walt Disney closed a red fiscal year for the first time in more than 40 years. A boost for the American entertainment group is that the Disney + streaming service is doing much better than expected.

Many amusement parks were closed for a long time so Disney lost a lot of money. The production of many films and television series has also ceased.

Finally, for the fiscal year ended October 3, Disney posted a loss of $ 2.8 billion. A year earlier, there was a net profit of 10.4 billion US dollars on the books. Sales fell by 6 percent to 65.4 billion dollars (55.4 billion euros).

Closure of cinemas

The closure of cinemas around the world has postponed or canceled virtually all major Disney film releases. For example, the company had previously announced that the feature film version of Mulan, due to hit theaters in March, would only be broadcast on its streaming channel. The Marvel blockbuster Black Widow and the Pixar animated film Soul were also moved.

CEO Bob Chapek sees an important glimmer of hope: Disney +, the streaming service that has also been available in Belgium since September. In early October, the Netflix competitor already had more than 73 million paying subscribers worldwide. “Far above our expectations in the first year,” said the CEO.