Disney says that its movie making unit profits are down
Disney has suffered quite many disappointing movies this year through their subsidiaries like Miramax and their DVD sales have dropped down too. As a result, the company said that they expect this division to report quarterly loss of $250 million to $300 million. Disney chief financial officer Thomas Staggs spoke at a meeting: “The difficult results at the studio have more to do with the performance of our titles than the marketplace as a whole.â€
The company believes that the forth quarter results would be much worse than they initially expected. Most of the movies released this quarter have shown disappointing results and the home video sales have disappointed too with the shelf life of DVDs of new movies dropping down drastically.
Most of the sales company reports for their DVDs take place within 2 weeks of their launch in the retail market. This is quite a surprising fact considering movies like Toy Story fetched quite a lot for the company for a long time from DVD sales. Staggs added to his statement: “We have to adapt our marketing and release strategies to most effectively match consumer demand. We need to make compelling films and other products that cut through the clutter.”