The company is doing well thanks to its box office hits, theme park revenue, and upcoming streaming service.
2019 started off slow for Disney but the company’s momentum has picked up in recent months. The company’s shares are up nearly 30% year to date and just over 35% from a year earlier.
And Disney’s momentum is likely to increase in the coming years as the company continues to release new content and launch its streaming service. Here are three things Disney is doing well in 2019.
Disney delivers strong box office performance
In recent years, Disney has ruled the box office, outperforming competitors like Warner Brothers. In 2018 alone, Disney brought $3.1 billion in box office sales. And this is likely to continue, especially given Disney’s recent acquisition of Fox.
The company’s biggest box office hit by far was Avengers: Endgame which grossed $357 million during its opening weekend. The movie is still in theatres and has grossed $2.75 billion worldwide.
Though they didn’t reach the same heights as Endgame, Captain Marvel and Aladdin also performed well in the theatre. And Disney just released Toy Story 4 and is preparing to release a remake of the Lion King which are also expected to do well.
Disney’s theme parks are a strong revenue driver
Disney’s theme parks account for over 40% of the company’s revenue. The company’s theme parks have continued to perform well over the last decade with park attendance rising more than 30%.
And Disney continues to increase its prices in its parks, causing the company’s total park revenue to rise by 80%. And the company is able to tweak its pricing while still increasing attendance and delivering a consistent customer experience.
Disney moves into video streaming
Earlier this year, Disney announced plans to launch its own streaming service, called Disney+. The company expects to ramp up its content production right from the start and will offer movies and original TV shows.
However, it will take time for Disney to begin making a profit from its streaming service. The company will lose out on the money it used to earn from Netflix. Instead, it will have to spend a lot more to compete with Netflix and also Apple, which is launching Apple TV.
But Disney expects that its global subscribers will reach 75 million by 2024. Of course, this is a long way off but Disney is hopeful its pivot to streaming will drive even more revenue for the company in the future.