Table of Content



1. OVERVIEW
1.1. Catalyst
1.2. Summary

2. WALT DISNEY HAD AN INCREDIBLY ROBUST BUSINESS MODEL UNTIL COVID-19 HIT
2.1. Prior to the pandemic Disney had been in a strong position
2.1.1. Acquisitions drove growth and cemented Disney’s leading position at the box office
2.2. Disney has made significant losses as a direct result of COVID-19
2.2.1. Box office is taking a severe hit
2.2.2. Park closures and social distancing have taken a huge financial toll on the company

3. COVID-19 HAS BEEN DETRIMENTAL FOR DISNEY BUT ITS STREAMING BUSINESS HAS THRIVED
3.1. Streaming now accounts for greater proportion of company’s revenue
3.1.1. Disney+ launch was well-timed
3.2. Disney+ is dwarfed by streaming giant Netflix but it is still growing
3.2.1. Disney differs in that it doesn’t tend to be used as a solo streaming service
3.2.2. Disney’s share of worldwide streaming market will continue to grow

4. DISNEY’S ANNUAL LOSS IS FIRST IN 40 YEARS BUT OPTIMISM REMAINS
4.1. Disney has been adapting its business during the pandemic with a strong focus on streaming
4.1.1. First step towards survival was to keep Bob Iger at the helm
4.1.2. Focus has shifted to streaming as box office diminishes
4.2. Investors have remained optimistic despite losses
4.2.1. Future looks promising for Disney

5. APPENDIX
5.1. Sources
5.2. Further reading

6. ASK THE ANALYST

7. ABOUT MARKETLINE



List of Figures


Figure 1: The Walt Disney Company revenue 2017-2019 (year-end September) ($bn)
Figure 2: Top 10 highest grossing movies of all time - worldwide (USD)
Figure 3: The Walt Disney Company net profit/loss, 2019-2020 ($bn)
Figure 4: Gross Box Office Revenue for the US and Canada, January 1 -November 17, 2016-2020 ($bn)
Figure 5: Walt Disney business segments as a percentage of total yearly revenue, 2019 and 2020
Figure 6: Disney+ logo
Figure 7: Disney+ Subscribers November 2019 - October 2020 (million)
Figure 8: Pixar’s Soul was originally scheduled for theater release but will head straight to Disney+

 

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