“There is a seismic shift happening in the marketplace, and you can either lead or follow and we chose to lead,” said Disney Chief Executive Bob Chapek over the company’s decision to prioritize streaming.
Compared to 2019, the company has seen a 23% drop in revenue at $14.71 billion, an actual increase from original analyst projections for Q4. The majority of the losses have been in the company’s theme park business, which is normally the crown jewel in the Disney portfolio.
Disney is far from being the first company to struggle during the pandemic. Other entertainment giants have also struggled, particularly AMC Theatres. With no new films being released and restrictions still in place, movie theaters have largely closed for the time being.
Fortunately for Disney, it has plenty of tools in its toolbox to whether the storm.
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