Wednesday, August 7, 2013
Disney Profits Saddled By The Lone Ranger
So the money juggernaut that is the Walt Disney Company runs merrily along. Theme park attendance - up, hotel occupancy - up, park spending - up, cable media revenue - up (ESPN remains the single most profitable entity of The Walt Disney Company - by far). Yep, it should have been great news as Disney reported their quarterly profits yesterday.
And then came the Studios Division.
And then came the Lone Ranger.
When all is said and done, Disney will write down a $160 - $190 million dollar loss on The Lone Ranger just missing the epic $200 million dollar record loss of 2012's John Carter bomb. Combine that. with all the success of Iron Man 3, that movie still fell pretty well behind the previous year's box office champ - The Avengers. The good news on the movie front is Pixar's Monsters University beat out Brave from the previous year. Overall, Disney Studios remains on a high risk, high reward or huge failure tight rope. Disney has given no indication that they will alter this direction because a single successful movie can lead to years of profitability in the realm of Disney through park promotion and merchandising.
Despite seeing all that Lone Ranger money go down the drain, don't shed any tears. Making money is what Disney does best and they do it from more angles than you can count.