Walt Disney Company Q3 Earnings Report

[CastAStone]

I must've only been looking at revenue. Well now I just feel foolish.

Although that segment also includes products and experiences, so not all of the losses are from the parks; some of the losses are from retail (licensing & Disney Store), Adventures by Disney, etc. I'd be really interested to see what the numbers are just for the parks, but I don't know that Disney releases that level of information.

When the 10 Q gets filed, it will have a breakout of theme parks, resorts & vacations, and products. So we will be able to see that to some extent

I forgot about DCL. I wouldn't be surprised if that was a large part of the PE&P segment losses.

Actually Disney cruise line is a very small component of the division’s revenue. They only have four ships.

 

[Farro]

We gave up going to movies years ago. We gave in once to see Mad Max Fury Road (most excellent). Our theaters are packed and full of idiots.

We are okay to wait for movies to be On Demand or free.

I doubt we will pay $30 to see anything at home...

 

[CastAStone]

When the 10 Q gets filed, it will have a breakout of theme parks, resorts & vacations, and products. So we will be able to see that to some extent

 

[princesscinderella]

I'm so happy I got to experience Avengers Endgame on opening night. I'd be crushed if this was supposed to come out this year. It was by far the greatest theater experience I have ever had. It was like being at a sporting event

We were on a Disney cruise when endgame came out and it was the best theater experience ever. They had it at 11pm on Wednesday night before it premiered on land in the Walt Disney theater. They had cast members dressed up as agents of shield with all the light and smoke effects going in the theater while everyone was getting seated. It was an epic way to see that movie. Everyone slept in late the next day.

I think the $30 for mulan is a little steep for on demand, especially for a movie that’s a remake. We will wait for it to be free on Disney+. We got the three year D23 deal so we have plenty of time to wait.

I’m glad to see that the parks open have added a “positive contribution” even if the demand is not what was expected. As a Floridian it helps our economy and the local workforce so much!

 

[Mit88]

Mulans budget is 200M + Marketing Budget which was already around 100M when it was set to release, will likely be a little more to re-market the film prior to its release

Rule of thumb is for a movie to break even, it needs to do 1.5x the Marketing + Shooting budget.

300M x 1.5 = 450M. Though it’ll probably be close to around 475M with a new round of marketing, but we’ll go with 450M.

Let’s just say clean slate. Everyone paying the $7 service, no verizon or D23 deals.

450,000,000 / 37 = 12,162,162 homes would need to rent the movie for it to break even.

It’s 15,000,000 homes if everyone that bought it was already a subscriber and we’re only taking into account the $30

So around 25% of current Disney+ subscribers would need to rent Mulan for the movie to break even.

Lots of hopes and prayers going into this release. If this thing gets pirated, which it will, this movie is going to lose money for Disney. Oh well. At least we get to see it in the comforts of our own home. Not our money. Just the money of a company creating this entertainment

 

[SwirlTheCitrus]

Do we KNOW that Mulan is a rental? Scott Gustin didn't know.

 

[skeeter31]

We gave up going to movies years ago. We gave in once to see Mad Max Fury Road (most excellent). Our theaters are packed and full of idiots.

We are okay to wait for movies to be On Demand or free.

I doubt we will pay $30 to see anything at home...

This is how I feel. We rarely go to the movies except for massive releases (Avengers, SW, and an occasional other movie...maybe 2-3 times a year if that). For those few movies I’d much rather watch them at home. I dislike everything about the theater, the seats, the other people, how loud it is, I usually leave with a headache. For those 2-3 films a year, I’d rather pay a little bit more to see it in the comfort of my house. And I may even rent a few more movies than I would go see in the theaters. Otherwise, I’m also ok waiting for them to come out on free streaming or cable.

 

[Krandor]

Unless you go to the theater by yourself, you’re probably paying $30 or more to watch a movie there.

With AMC A-List no I wasn't.

 

[skeeter31]

Do we KNOW that Mulan is a rental? Scott Gustin didn't know.

No, it’s conjecture at this point. Some news outlets, like Variety, are reporting it’s a 48 hour rental, but nothing was concrete in the call.

 

[Mit88]

Do we KNOW that Mulan is a rental? Scott Gustin didn't know.

No, but its a good assumption. They only listed 1 price. If there was a rent or buy, they probably would have mentioned 2 price points. Onward I believe was rental only until it went to Disney+

The original Disney+ debut of Mulan was set for mid-October for the July theatrical release date, I would guess they’ll probably stick with that. And if they do, people will just wait until its $7 and they get that and part of Mandalorian in the same month

 

[Krandor]

Its not even necessarily about just Mulan. If this becomes a trend, you’re looking at 100’s if not 1000s of dollars to see movies.

Bill and Ted. Want to see it without getting the movie spoiled? $20
WW84. Want to see it without getting the movie spoiled? $30
Mulan. Want to see it without getting the movie spoiled? $30
Black Widow. $30
Soul. $30
Dune. $30
Bond. $30

$200 right there when it would cost you ~$70 with AMC or Regal movie passes.

I dont care what kind of home theater system you have, you’ll never replicate the theater experience. And thats what you’re paying for. The reaction’s from Endgame and the moment with mjoilnir went viral even this spring because of what that moment was like BECAUSE of the theater experience. Watching that scene at home for the first time would pale in comparison.

And I'm personally not paying that. Which is my choice. Those prices work good for a famiy or 3 or 4 who watch together. They don't make sense for a single person.

ANd I have a nice home theater system but it is not close to Dolly Cinemia or IMAX. Not even close to the same.

I Personally hope this doesn't become a trend but know it very well may especially if the theaters can't recover from COVID.

 

[Krandor]

No, it’s conjecture at this point. Some news outlets, like Variety, are reporting it’s a 48 hour rental, but nothing was concrete in the call.

I jusst for a notication from Wall Street journal which stated "Correction "Mulan: will be available to disney+ subscriber as a download for about $30. An earlier alert said the movie will cost that much to rent"

 

[Brianstl]

As I review the segment income I am seeing Parks, Experiences and Products an operating loss of 1.96 billion Below from the chart on page 3 and this does not include any costs that are induced in the one time 5+ billion write down.

https://thewaltdisneycompany.com/app/uploads/2020/08/q3-fy20-earnings.pdf

Quarter Ended Nine Months Ended June 27, 2020 June 29, 2019 Change June 27, 2020 June 29, 2019 Change Revenues: Media Networks $ 6,562 $ 6,713 (2) % $ 21,180 $ 18,317 16 % Parks, Experiences and Products 983 6,575 (85) % 13,922 19,570 (29) % Studio Entertainment 1,738 3,836 (55) % 8,041 7,817 3 % Direct-to-Consumer & International 3,969 3,875 2 % 12,114 5,940 >100 % Eliminations (1,473) (737) (100) % (4,576) (1,155) >(100) % Total Revenues $ 11,779 $ 20,262 (42) % $ 50,681 $ 50,489 — % Segment operating income: Media Networks $ 3,153 $ 2,136 48 % $ 7,158 $ 5,696 26 % Parks, Experiences and Products (1,960) 1,719 nm 1,017 5,377 (81) % Studio Entertainment 668 792 (16) % 2,082 1,607 30 % Direct-to-Consumer & International (706) (562) (26) % (2,226) (1,084) >(100) % Eliminations (56) (133) 58 % (529) (174) >(100) % Total Segment Operating Income $ 1,099 $ 3,952 (72) % $ 7,502 $ 11,422 (34) %

It wasn’t a onetime write down. That $5 billion was booked as income as you can see here

 

[Mit88]

And I'm personally not paying that. Which is my choice. Those prices work good for a famiy or 3 or 4 who watch together. They don't make sense for a single person.

ANd I have a nice home theater system but it is not close to Dolly Cinemia or IMAX. Not even close to the same.

I Personally hope this doesn't become a trend but know it very well may especially if the theaters can't recover from COVID.

If I didn’t have to watch it for work, I wouldn’t pay for it either. Between the 2 of us it comes out to just under both of our AMC passes combined. And thats without the IMAX/DD experience that we’d typically see a movie like this in.

 

[CastAStone]

It wasn’t a onetime write down. That $5 billion was booked as income as you can see here
View attachment 515890

I am looking at this from the 10-Q. Revenues minus expenses was a positive number.

 

[Krandor]

If I didn’t have to watch it for work, I wouldn’t pay for it either. Between the 2 of us it comes out to just under both of our AMC passes combined. And thats without the IMAX/DD experience that we’d typically see a movie like this in.

OH yeah pre-covid I would watch all major new releases in dolby. Just an amazing experience.

 

[karly05]

I'm fine to wait till whenever for Mulan to eventually stream "free" on D+. But if they pull this with Soul, they will get my $. I don't think I've ever missed a Pixar opening weekend and I'm not starting now.

 

[TwoMisfits]

I jusst for a notication from Wall Street journal which stated "Correction "Mulan: will be available to disney+ subscriber as a download for about $30. An earlier alert said the movie will cost that much to rent"

They saw the immediate feedback and already made the 1st change...

 

[Brianstl]

I am looking at this from the 10-Q. Revenues minus expenses was a positive number.
View attachment 515891

That is because $4.953 billion in income from goodwill and intangible asset impairments are included in the revenues as you can see on page 4 under operating activities.

 

[Mit88]

They saw the immediate feedback and already made the 1st change...

Buy or rent, it doesn’t really matter. Come October its on D+ for $7 a month until streaming is no longer a thing. I dont believe newer projects for Disney have any obligations to other networks or services like they did prior to 2020 with Starz and Netflix.

Trolls made $300M under PVOD. Granted, that was in early April when everything outside of essential businesses were closed in every state. So there was more time on people’s hands to pay for movies like Trolls because there was nothing to do.

From what I’m tallying through film twitter it seems like about 1 out of every 10 people are saying they’ll buy it. 6 out of 10 saying they’ll wait until its no extra charge, and 3/10 saying they had no interest in seeing it outside of a theater anyway.

Doesn’t look good for Disney from initial reactions. This was certainly not the brightest plan as a company considering this movie would have had worldwide appeal and likely crossed the 1B dollar mark at the box office. But not much they can do with states not allowing theaters to reopen. But if you want a lap dance, gentleman’s clubs are open...because those are safer than movie theaters