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    Disney profit sinks amid shuttered parks, movies and sports

    By SHOOTUpdated:No Comments1313 Views
    In this March 16, 2020, file photo, the entrance to the parking lot at the Magic Kingdom at Walt Disney World is closed in Lake Buena Vista, Fla. The House of Mouse is struggling. Its second quarter profit dropped as the company took a $1.4 billion hit due to the coronavirus pandemic. For the January to March quarter, Disney's net income dropped 93 percent to 26 cents per share. Excluding one-time items, net income totaled 60 cents per share. Analysts expected 91 cents per share, according to FactSet. (AP Photo/John Raoux, File)

    By Mae Anderson, Business Writer

    NEW YORK (AP) --

    The House of Mouse is struggling amid the coronavirus pandemic. Disney reported a steep decline in profit as many segments of its media and entertainment offerings ground to a standstill. 

    Its second quarter profit dropped 91% to $475 million, down from $5.4 billion a year earlier. Overall, the company said costs related to COVID-19 cut Disney's pretax profit by $1.4 billion. 

    One bright spot was its Disney Plus streaming service, which debuted in November in the U.S. and rolled out to the UK and other parts of Europe in April. As of May 4, the company said Disney Plus had 54.5 million subscribers. Netflix, by contrast, has 183 million subscribers worldwide, a base it has spent years building.

    Disney Plus contributed to an almost $3 billion revenue increase for Disney's direct-to-consumer and international business. Hulu and ESPN Plus, two other streaming servces owned by Disney, had 32.1 million and 7.9 million paid subscribers, respectively.

    Overall Disney revenue rose 21 percent to $18.01 billion, just short of the $18.06 billion analysts expected. The company's shares fell roughly 2% in after-market trading.

    In a conference call with analysts, CEO Bob Chapek said the company plans to reopen its Disney Shanghai park on May 11. The phased opening will include limits on attendance, an advance reservation system, social distancing procedures such as wearing masks, and temperature screening and contract tracing efforts that are mandated by the government.

    The Walt Disney Co. shuttered its parks in mid-March as the new coronavirus spread. Its theme parks furloughed a reported 100,000 workers without pay in the U.S., including 43,000 workers at Walt Disney World in Orlando, Florida. Those workers can keep their benefits for up to a year. Disney Cruise Lines have also been suspended.

    The company's film studios, known for churning out blockbusters, have also suspended production. Disney pushed back most of its 2020 big budget movies, including the live-action "Mulan," "The New Mutants," the horror-thriller "Antlers," and Marvel's "Black Widow," to late this year or beyond.

    Disney-owned ESPN and its streaming arm ESPN Plus are also suffering from the dearth of live sports during the pandemic.

    Chapek said Disney has "substantially reduced" senior executive compensation and will keep the cuts in place until there is a "substantive recovery." He offered no further details. Disney is also suspending its semi-annual dividend, scheduled for July, which will save it about $1.6 billion.

    Tags:coronavirusDisneyDisney Plus



    India’s legendary filmmaker Shyam Benegal dies at age 90

    Tuesday, December 24, 2024
    Indian film directors Shyam Benegal, right, is seen during a discussion on Indian Cinema in Hyderabad, India, Monday, Feb. 18, 2008. (AP Photo/Mahesh Kumar A, File)

    Shyam Benegal, a renowned Indian filmmaker known for pioneering a new wave cinema movement that tackled social issues in the 1970s, has died after suffering from chronic kidney disease. He was 90.

    His contribution to cinema was recognized as a director, editor and screenwriter. He was also credited with a new genre of filmmaking.

    Benegal passed away on Monday at Mumbai's Wockhardt Hospital, and his cremation will take place on Tuesday, the Press Trust of India news agency reported, citing his daughter Piya.

    "Benegal had been suffering from chronic kidney disease for several years but it had gotten very bad. That's the reason for his death," Piya said.

    Many paid tribute to the legendary filmmaker on social media platform X.

    Filmmaker Mahesh Bhatt wrote that Benegal told stories without pretense. "They were raw and real, about the struggles of ordinary people. His films had craft and conviction."

    "Deeply saddened by the passing of Shyam Benegal, whose storytelling had a profound impact on Indian cinema. His works will continue to be admired by people from different walks of life," India's Prime Minister Narendra Modi tweeted.

    He was a mentor to top Indian actors, including Shabana Azmi, Smita Patil, Naseeruddin Shah, and Om Puri who made their mark in Bollywood's popular cinema as well.

    "I have lost my foster father, a man to whom I owe more than I can say," posted Naseeruddin Shah.

    "Shyam Benegal was not just a legend; he was a visionary who redefined storytelling and inspired generations," said actor Manoj Bajpayee.

    Benegal came into the limelight in the 1970s, with a series of films that challenged mainstream Bollywood. His films Ankur (1974), Nishant (1975), Manthan (1976), and Bhumika (1977)... Read More

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