Disney Faces ‘Acute’ Challenges Post-Pandemic: How Soon Can Parks and Movies Recover?
Five months ago, Disney stood at the top of the Hollywood Matterhorn. It controlled some 40% of all box office revenue last year and scooped up 60% of industry profits. Its market cap was larger than any studio competitor by a mile. And while most of its legacy businesses (except ESPN) were humming, Disney successfully launched its ambitious new streaming service, Disney+, paving the way for a pivot to a digital future. In an instant, the coronavirus pandemic changed all that. The global shutdown has closed Disney’s theme parks, suspended cruises, ended movie and TV production, stopped theatrical releases in their tracks, choked off live sports and taken a sledgehammer to television advertising. The Walt Disney Co. that emerges from this crisis will likely look very different — and smaller — than the behemoth that ruled just months ago. Earlier this month, Disney said it was furloughing 43,000 Disney World employees as the theme park has been shuttered since mid-March due to concern about the spread of coronavirus; tens of thousands more were furloughed at the company’s California parks. And the conglomerate secured a new credit agreement with Citigroup for up to $5 billion to help it get through the...
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