Disney Provides Financial Information on Its Direct-to-Consumer and International Business
January 18 2019 - 01:00PM
Business Wire
8-K Report Includes Details of Disney’s
Significant Commitment and Investment in Technology and Original
Content for its DTC OfferingsDisney Investor Day on April 11
Will Offer Insight into Company’s Direct-to-Consumer Business,
Including a First Look at the Highly Anticipated Disney+ Streaming
Service
The Walt Disney Company (NYSE: DIS) today provided detailed
financial information regarding its recently formed
Direct-to-Consumer and International business segment, offering
additional insight into the Company’s growing DTC business and its
investment in technology and original content.
In a Form 8-K published today, the Company recast financial
results for the past three fiscal years to reflect the recent
reorganization of Disney’s business segments. This recast has no
impact on prior-years’ net income or earnings per share, and is
intended to provide information useful to investors in analyzing
the Company’s February 5 release of fiscal first quarter earnings,
when financial results will be reported under the new segment
structure.
“Our top priority is fully leveraging our global brands and
great content to create world-class direct-to-consumer
entertainment,” said Robert A. Iger, Chairman and Chief Executive
Officer, The Walt Disney Company. “We have the structure and
management in place to drive growth in our DTC business, and our
acquisition of 21st Century Fox further enhances our ability to
deliver significant value to consumers and shareholders.”
Mr. Iger added, “Acquiring BAMTech enabled us to enter the DTC
space quickly and effectively, as demonstrated by the success of
ESPN+. The service surpassed one million subscribers in its
first five months and continues to grow as it expands its content
mix, all of which bodes well for our upcoming launch of
Disney+. The ability to connect directly with millions of
Disney, Pixar, Marvel, and Star Wars fans creates tremendous
opportunities for growth. In addition to leveraging our
existing IP in new ways, we’re making significant investments in
original content exclusively for Disney+, creating an impressive
pipeline of high-quality movies and series we believe will make the
streaming service even more compelling for consumers.”
The robust slate of Disney+ content currently in production
includes the first-ever live-action Star Wars series, The
Mandalorian; an original series based on Disney Channel’s High
School Musical; an animated series based on Pixar’s Monsters, Inc.
franchise; a new season of the Star Wars animated series, Clone
Wars; a live-action version of the animated classic Lady and the
Tramp; and a number of original docu-series. A live-action Marvel
series starring Tom Hiddleston, a second Star Wars series starring
Diego Luna, and other high-profile projects are also in
development.
Disney will discuss its direct-to-consumer business in greater
detail at Disney Investor Day on April 11, 2019. The Company will
also present a demonstration of the highly anticipated Disney+ and
a first-look at some of the original content being created by the
Company’s television and film studios exclusively for the new
streaming service.
About The Walt Disney
Company
The Walt Disney Company, together with its subsidiaries, is a
diversified worldwide entertainment company with operations in four
business segments: Media Networks, Studio Entertainment,
Direct-to-Consumer and International; and Parks, Experiences and
Consumer Products. Disney is a Dow 30 company and had annual
revenues of $59.4 billion in its Fiscal Year 2018.
Forward-Looking
Statements
Management believes certain statements in this press release may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are made on the basis of management’s views and assumptions
regarding future events and business performance as of the time the
statements are made. Management does not undertake any obligation
to update these statements.
Actual results may differ materially from those expressed or
implied. Such differences may result from actions taken by the
Company, including restructuring or strategic initiatives
(including capital investments or asset acquisitions or
dispositions), as well as from developments beyond the Company’s
control, including:
- changes in domestic and global economic
conditions, competitive conditions and consumer preferences;
- adverse weather conditions or natural
disasters;
- health concerns;
- international, political, or military
developments; and
- technological developments.
Such developments may affect entertainment, travel and leisure
businesses generally and may, among other things, affect:
- the performance of the Company’s
theatrical and home entertainment releases;
- the advertising market for broadcast
and cable television programming;
- demand for our products and
services;
- expenses of providing medical and
pension benefits;
- income tax expense;
- performance of some or all company
businesses either directly or through their impact on those who
distribute our products; and
- completion of the pending transaction
with 21CF.
Additional factors are set forth in the Company’s Annual Report
on Form 10-K for the year ended September 29, 2018 under Item 1A,
“Risk Factors,” and subsequent reports.
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version on businesswire.com: https://www.businesswire.com/news/home/20190118005453/en/
Media Contacts:
Zenia Muchazenia.mucha@disney.com818-560-5300
David Jeffersondavid.j.jefferson@disney.com818-560-4832
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