You are on page 1of 18

DISNEY VS

COVID-19
DAYLYN MOSHER

This Photo by Unknown Author is licensed under CC BY-NC


EFFECTS OF COVID-19

• Disney and Disneyland closures


due to COVID-19
• Impacts on media
• Suspension of live sports
DISNEY’S
CHALLENGE
WILL DISNEY BE ABLE TO RECOVER FINANCIALLY FROM
THE PARK CLOSURES DUE TO THE CORONAVIRUS
PANDEMIC?
DISNEY’S SUBDIVISIONS

Parks & Media Studio Direct to


Resorts Networks Entertainment Consumer
Quartiles
Mean
Mean 22.5 Inclusive Exclusive

Minimum 15.1

PARKS & Median


Median 23.5 1st 21.125 19.15
RESORTS DATA 2nd 23.5 23.5
Mode
Mode N/A 3rd 24.525 25.075

Maximum 26.2
Range
Range 11.1
Mean
Mean 22.95 Median
Median 22.2
Mode
Mode N/A Range
Range 4.8
MEDIA Quartiles
NETWORKS Inclusive Exclusive
DATA Minimum 21.2
1st 21.45
Quartiles 21.275
2nd 22.2 22.2
3rd 24.225 25.1
Maximum 26
Quartiles
Inclusive Exclusive
Mean
Mean 9.483 Minimum 7.3
STUDIO
ENTERTAINME
Median
Median 9.75 1st 8.65 8.125

2nd 9.75 9.75


NT DATA Mode
Mode N/A 3rd 10.475 10.725

Maximum 11.1
Range
Range 3.8
Mean
Mean 10.767 Median
Median 7.3
Mode
Mode N/A Range
Range 19.9
DIRECT TO Quartiles
CONSUMER Inclusive Exclusive
DATA Minimum 3.1
1st 3.875
Quartiles 3.325
2nd 7.3 7.3
3rd 17.7 21.125
Maximum 23
PARKS AND Parks & Resorts Revenue in Billions ($)

RESORTS
30
26.2
24.7 24
25 23
20.5

REVENUE IN
20
15.1
15

BILLIONS
10

0
2014 2017 2018 2019 2020 2021
Projections
MEDIA Media Networks Revenue in Billions ($)

NETWORKS
30
24.8 26
25 22.5
21.2 21.3 21.9

REVENUE IN
20

15

10

BILLIONS 5

0
2014 2017 2018 2019 2020 2021
Projections
Media Networks
Studio Entertainment Revenue in Billions ($)
STUDIO 12
10.1
11.1
10.6

ENTERTAINME
10 9.4
8.4
8 7.3

NT REVENUE 6

IN BILLIONS 2

0
2014 2017 2018 2019 2020 2021
Projections
Studio Entertainment
DIRECT TO Direct to Consumer Revenue in Billions ($)

CONSUMER
25 23
20.5
20

REVENUE IN 15

10 9.3

BILLIONS 5

0
5.3
3.1 3.4

2014 2017 2018 2019 2020 2021


Projections
Direct To Consumer
HYPOTHESIS As the parks and resorts remained closed, the
focus on revenue will shift to the other divisions of
TESTING the
•   Disney company, namely an increase focus on
direct to consumer products.
LINEAR REGRESSION ANALYSIS
BETWEEN PARKS AND RESORTS
REVENUE AND DIRECT TO
CONSUMER REVENUE

• Multiple R = 0.0789
• R Square = 0.00622
• Standard Error = 4.442
• Significance F = 0.882
• Direct to Consumer Coefficient = 0.0356
• P Value = 0.882
MULTIPLE
REGRESSION
ANALYSIS
1st Analysis
• R Square = 0.859
• P Values:
• Media Networks: 0.880
• Studio Entertainment: 0.148
• Direct to Consumer: 0.515

Normal Probability Plot Studio Entertainment Residual Plot 2nd Analysis


30 4 • R Square = 0.857
25 3
Parks & Resorts

20 2 • P Values:
Residuals

15 1
10 0 • Studio Entertainment: 0.0243
5 -1 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 • Direct to Consumer: 0.249
0 -2
0 10 20 30 40 50 60 70 80 90 100 -3 3rd Analysis
Sample Percentile Studio Entertainment
• R Square =0.760
• P Values of Studio Entertainment = 0.236
RECOMMENDATIONS

Direct to
Park & Consumer
Resorts Revenue
Revenue Increasing
Declining
Shifting Revenue
Focus
THANK YOU!
REFERENCES
Alexander, J. (2020, May 5). Streaming remains lone bright spot as Disney prepares for an unprecedented fight. Retrieved from
https://www.theverge.com/2020/5/5/21247794/disney-plus-subscribers-earnings-q2-theatrical-parks-streaming-movies-delays.
Barnes, B. (2020, May 5). Disney Takes a Pandemic Hit, and There’s Worse to Come. Retrieved from
https://www.nytimes.com/2020/05/05/business/media/coronavirus-disney-earnings.html.
Battaglio, S. & James, M. (2020, March 18). The coronavirus threw ESPN a curveball. How the sports giant is changing its game. Retrieved from
https://www.latimes.com/entertainment-arts/business/story/2020-03-18/coronavirus-pandemic-forces-espn-to-reinvent-itself-for-a-sports-free-wo
rld
.
Coyle, J. (2020, March 17). Cinemas close nationwide, Disney postpones ‘Black Widow.’ Retrieved from
abcnews.go.com/Business/wireStory/cinemas-close-nationwide-studios-push-movies-homes-69640882.
Hipes, P. (2020, May 5). Disney Theme Park Unit Lost $1B in Q2 Due To Coronavirus Shutdown. Retrieved from
https://deadline.com/2020/05/disneyland-disneyworld-coronavirus-losses-q2-earnings-disney-1202926668/.
Owens, J.C. (2020, February 5). Disney+ subscriptions have topped 28 million, earnings beat expectations. Retrieved from
https://www.marketwatch.com/story/disney-subscriptions-top-26-million-stock-jumps-2020-02-04#:~:text=Disney%2B%20is%20part%20of%20one,
operating%20loss%20of%20%24693%20million.
.
Schwartz, M. S. (2019, March 20). Disney Officially Owns 21st Century Fox. Retrieved from
https://www.npr.org/2019/03/20/705009029/disney-officially-owns-21st-century-fox.
Trefis. (2020a, April 24). Disney Today vs. Disney 2014: Which is Better Placed To Handle Covid-19 Pandemic? Retrieved from
https://dashboards.trefis.com/data/companies/DIS/no-login-required/6eZyTYHK/Disney-Today-vs-Disney-2014-Which-Is-Better-Placed-To-Handle-C
OVID-19-Pandemic-
.
Trefis. (2020b, June 19). Walt Disney Revenues: How Does Disney Make Money? Retrieved from
https://dashboards.trefis.com/data/companies/DIS/no-login-required/aLYpgkEL/Walt-Disney-Revenues-How-Does-Disney-Make-Money-.
Vena, D. (2020, January 15). Disney+ Has Generated More Than $100 Million From Subscribers. Retrieved from

You might also like