Mickey Mouse is in crisis, despite the success of the new Disney+ streaming platform, which landed in Italy at the end of March and which, six months after its launch in the US, has already conquered 54,5 million customers worldwide. In fact, the Covid-19 pandemic is folding Disney's accounts, which forced the group to close its 6 parks of entertainment scattered throughout the US and around the world, causing moreover the dismissal of 100.000 workers, who were at least guaranteed – after an agreement with the unions – health insurance for another year. Thus, the second quarter of the fiscal year saw operating income drop 37% to $2,4 billion. On the other hand, turnover managed to grow on an annual basis, thanks to the excellent performance in 2019 (+21% to 18 billion), but the crisis is also making itself felt on the Stock Exchange, where since the beginning of the year the shares Disney have already lost 30%. Consequentially, the BoD has decided to suspend the distribution of the 1,6 billion euro dividendscheduled for July.
Even for a diversified business such as that of the brand that invented Mickey Mouse and his associates, the coronavirus has therefore had very serious effects: although today most of the contents are online, parks still account for a third of turnover. And it's not just them: closed cinemas, stopped cruises (Disney Cruise Line has been organizing thematic trips since 1996), stand-by sporting events (Disney owns the ESPN+ sports channel) and film production itself also weigh heavily. pause, since it is not yet possible to work on the sets. Disney is therefore in a hurry to get its universe back in motion and has already announced that at least the amusement park in Shanghai, China will be reopened on May 11, albeit at a very reduced rate, with 24.000 employees instead of the usual 80.000, with limited admissions and the obligation to wear masks for visitors.
The only positive note in the last quarter is therefore the growth of Disney+ and of media content in general: in April alone, with the launch of the platform in various European countries, subscribers rose by over 4 million units. "We are especially satisfied with the result in Western Europe and India," said the US company. Disney also owns 100% of another streaming platform, Hulu, whose subscribers grew by 27% in one year, reaching 32 million at the end of March, and of the sports channel ESPN+: all these platforms combined have revenues from January to March $4,1 billion, nearly quadruple from a year ago. A real boom, which however was not enough to contain the damage from Covid-19: however, now internet TV represents 22% of Disney's overall business, more than triple 12 months ago.
