For the past decade, Disney has been the Teflon movie studio, remarkably adept at withstanding the tectonic changes impacting the film industry, and well fortified by its arsenal of key properties …
There are other issues bedeviling the Magic Kingdom these days. Because of its all-tentpole, all-the-time strategy, Disney’s movies each require production budgets of at least $200 million — plus marketing costs of roughly $100 million. That means the studio’s films have a higher benchmark than its rivals to break even at the box office. In the past, those budgets were justified with movies that crossed $1 billion worldwide with ease.
The problem is that getting these costs under control will take time. Major movies take at least three to four years to develop, produce and distribute — a lifetime in a fast-changing industry. Even if Disney is serious about tightening its belt, it may not make a noticeable difference until 2026 or beyond.
“If you cut costs, do you degrade the quality of the product?” says Brandon Nispel, an equity research analyst with KeyBanc Capital Markets. “If you spend less, do people like the movies you are making less? And how much and how fast can you start cutting?” “People have become conditioned to expect that things will quickly appear on Disney+,” says Neil Macker, a senior equity analyst for Morningstar Research Services. “The theatrical movie business has been in decline for awhile and the pandemic accelerated that.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Kevin Hart: Reality Check’: How to Watch the New Stand-Up Comedy Special for FreeHold your laughs until the stand-up special airs on Thursday (July 6) on Peacock.
Read more »
Facing new drug reality, Colorado lawmakers reconvene opioid committee for first time in 4 yearsThe legislative committee tasked with helping to guide Colorado’s response to substance use has reconvened for the first time in four years to face a drastically changed drug landscape, a wor…
Read more »
10 Harsh Realities Of Watching Disney's Aladdin Today, 31 Years LaterWith all Aladdin’s problematic aspects and other issues, it's harder to watch the Dinsey movie 31 years after its release than when it first came out.
Read more »
TV’s Golden Era Proved Costly to StreamersConsumers are winning from the streaming revolution. But across most of Hollywood, the businesses churning out TV and movies are losing.
Read more »
British Army to get new anti-drone gun sights thanks to new contractThe British Army has announced its intention to acquire Israeli-made drone-tracking SmartShooter SMASH gun sights to provide anti-drone fire control for soldiers.
Read more »