Disney Content Sales/Licensing Posts Q3 Loss, Despite 26% Revenue Gain

The Walt Disney Co. on Aug. 10 said revenue in its “content sales/licensing and other” business segment increased 26% in the third quarter (ended July 2) to $2.1 billion from $1.66 billion in the previous-year period. The segment, which includes home entertainment, saw operating income of $132 million in the previous-year period reverse to a loss of $27 million this year.

The decrease in operating results was due to an unfavorable foreign exchange impact and lower TV/SVOD and home entertainment distribution results. These decreases were partially offset by an increase in Disney’s stage play business, as productions were generally shut down in the prior-year quarter due to COVID-19, and higher theatrical distribution results.
The decrease in TV/SVOD distribution results was due to a decrease in sales of theatrical film content primarily due to a shift from licensing content to third parties to distribution on Disney’s direct-to-consumer services.

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The decrease in home entertainment results was due to lower unit sales of catalog titles. The increase in theatrical distribution results was due to the strong performance of Doctor Strange in the Multiverse of Madness in the current quarter compared with Cruella in the prior-year quarter. Current quarter releases also included Pixar Animation’s Lightyear and The Bob’s Burgers Movie.

Disney’s top-selling packaged-media release through July 2 was the animated Encanto. Disney’s top box office release with more than $1 billion in ticket sales, Doctor Strange in the Multiverse, was released into packaged-media retail channels on July 26. Marvel Studios’ Thor: Love and Thunder has topped $704 million at the global box office to become the highest-grossing Thor movie.

That said, Disney CFO Christine McCarthy said the home entertainment/licensing segment would see an additional revenue decline of $100 million in the current fourth quarter as the company transitions content licensing away from third-party licensees to the Disney+ and Hulu streaming platforms.

Samba TV: ‘Lightyear’ Disney+ Debut Fails to Match ‘Encanto’ Bow

New data from Samba TV found that 1.7 million U.S. Disney+ subscriber households watched Lightyear during its Aug. 3-7 debut. That was about 1 million fewer households than the Disney animated musical Encanto scored during its debut week of streaming, which began on Dec. 23, 2021.

Samba, which says it tracks an addressable footprint of 46 million opted-in devices worldwide, said 255,000 U.K. households, 39,000 German and 12,000 Aussie homes streamed Lightyear in its debut.

Of the top 25 designated market areas in the U.S., Denver over-indexed the most (+28%), followed by Seattle (+27%) and Phoenix (+25%).

“The movie landed a strong opening weekend on streaming after spending several weeks in theaters, but fell short of Disney’s last animated theatrical release,” Cole Strain, VP of measurement products for  Samba TV, said in a statement.

Shout! Kids Readies ‘Gulliver Returns’ Movie, Promises Aid to Ukrainian Relief Efforts

Shout! Factory’s Shout! Kids unit has set home release dates for the new animated film Gulliver Returns, with a portion of the proceeds going to Ukrainian relief efforts.

The film will be released digitally July 26, followed by a DVD release on Aug. 9.

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A portion of first-year sales will be donated to World Central Kitchen, a nonprofit organization that provides fresh meals in response to crises. The organization is currently active in Ukraine and surrounding countries, providing meals for as many people as possible at border crossings, shelters, and other locations. 
Inspired by both Jonathan Swift’s timeless tale and an original idea from Ukrainian President Volodymyr Zelenskyy, Gulliver Returns is a production of Gulliver Films and 95 Animation Studio in Ukraine. The English-language movie is directed by Ilya Maksimov, with Tony Bonilla (Encanto, Moana) as animation director. 

Advance orders for the Gulliver Returns DVD are being accepted now at ShoutFactory.com.

In the film, Gulliver receives an urgent letter from the people of Lilliput, asking for his help. Seeing that remarkable changes have taken place on the island, Gulliver and his friends find themselves in a whirlwind of extraordinary events, including encounters with crafty enemies and breakneck chases.

Disney+ to Launch Original Series on the Animation Process

Disney+ on April 27 will begin streaming the six-part original series “Sketchbook,” an instructional documentary series exploring the art behind Disney’s famed animated classics.

The series, from Supper Club in partnership with Walt Disney Animation Studios, will provide viewers with an insider’s look into the animation process as studio artists teach them how to draw beloved Disney characters, including Kuzco from Emperor’s New Groove, Olaf from Frozen, Genie from Aladdin, Captain Hook from Peter Pan, Mirabel from Encanto and young Simba from The Lion King.

Each episode focuses on a single artist illustrating characters that either they helped create or inspired them to want to be an artist at the studio. The artists also shared their own stories about how they made their way to Disney and their chosen character. 

“This series is an unprecedented look at what it takes to bring these beloved characters to life,” said Jason Sterman, director and executive producer at Supper Club. “We are honored to feature this incredible group of artists who trusted us not only with presenting their skillset, but with sharing their personal, and often emotional, stories with the world. We’re looking forward to audiences becoming inspired to hopefully pick up a pencil and put it to paper themselves.”

“Think back to your favorite films from Walt Disney Animation Studios, whether from our earliest days, the films of our 1990s renaissance or the award-winning films of today like Encanto and Frozen — every film starts with an idea, a pencil and an artist,” said series executive producer Amy Astley, SVP of publicity and communications, creative legacy and brand strategy for Walt Disney Animation Studios. “And within the thousands of artists who have created our 60 films over the last century, every person has a unique and special story. … With ‘Sketchbook,’ our hope is to demystify the art of drawing, making it accessible for anyone who wants to pick up a pencil and paper while deepening an appreciation for the individuals who contribute to our films.” 

‘Inventing Anna’ Tops Nielsen Streaming Chart Week After Debut

Shondra Rhimes’ limited series “Inventing Anna” topped Nielsen’s weekly streaming chart the week after it launched on Netflix, tripling its viewership to nearly 3.3 billion minutes.

The prior week’s chart topper, the Amazon Original series “Reacher,” slipped to No. 5 during the week of Feb. 14 to 20.

“Inventing Anna” stars Anna Chlumsky as a journalist with a lot to prove who investigates the case of Anna Delvey (played by Julia Garner), the Instagram-legendary German heiress who stole the hearts of New York’s social scene, along with their money as well.

Another Netflix series, the dating reality series “Love Is Blind,” cracked the top 10 with a No. 2 chart debut — and more than 1.4 billion minutes streamed.

The No. 3 spot went to the animated Disney film Encanto, streaming exclusively on Disney+, with over 1.2 billion minutes.

“Ozark,” with just over 1 billion minutes streamed, placed fourth, while “Reacher” posted 935 million streaming minutes, down from nearly 1.6 billion minutes the prior week.

Source: Nielsen Streaming Content Ratings (Amazon Prime, Disney+, Hulu, Netflix and Apple TV+), Nielsen National TV Panel, U.S. Viewing through Television.

‘Encanto’ Rises to Top Spot on Disc Sales Charts

Disney’s Encanto in its fourth week rose to the No. 1 spot on the NPD VideoScan First Alert chart, which tracks combined DVD and Blu-ray Disc unit sales, and the dedicated Blu-ray Disc chart the week ended March 5.

The animated film, the 60th official release from the venerable Walt Disney Animation Studio, had debuted at No. 2 overall, holding that spot in its second week before dropping to No. 3 in its third. This is its second time atop the Blu-ray chart, where it debuted at No. 1 three weeks earlier.

The top seller the previous two weeks, Disney-owned Marvel Studios’ Eternals, slipped to No. 2 on both charts in its third week.

Rounding out the top five on both charts were Sony Pictures’ Ghostbusters: Afterlife at No. 3, Disney-owned 20th Century Studios’ The King’s Man at No. 4, and Lionsgate’s Kurt Warner biopic American Underdog at No. 5.

The week’s top newcomer, at No. 13 overall and No. 11 on the Blu-ray Disc chart, was director Kenneth Branagh’s Oscar-nominated drama Belfast.

The Blu-ray Disc top 20 sales chart saw the newly released The Batman: The Complete Series debut at No. 18. The Blu-ray set of the 2004-08 animated series, which shares a name with but is otherwise unconnected to the recent live-action theatrical release The Batman, did not chart among the top 50 overall sellers.

The Russian invasion of Ukraine has apparently triggered a surge in sales of Red Dawn, with a double-feature DVD containing both the 1984 original and its 2012 remake climbing to No. 19 on the overall disc sales chart. The original film is about a group of teens who fight a Russian invasion of the United States (in the 2012 version the invaders were North Koreans).

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The Media Play News rental chart for the week ended March 6 had The King’s Man at No. 1.

MGM’s House of Gucci, distributed on disc by Universal Pictures Home Entertainment, was the No. 2 rental, followed at No. 3 by American Underdog.

Ghostbusters: Afterlife was No. 4 and Eternals was No. 5.

Top 20 Sellers for Week Ended 3-5-22
Top 20 Rentals for Week Ended 3-6-22
Top 20 Selling Blu-ray Discs for Week Ended 3-5-22
Top 20 Blu-ray Market Share for Week Ended 3-5-22
Sales Report for Week Ended 3-5-22
Digital Transactions Snapshot for Week Ended 3-7-22



Box Office $95.36 million;
$29.99 DVD, $35.99 Blu-ray, $43.99 UHD BD;
Rated ‘PG’ for some thematic elements and mile peril.
Voices of Stephanie Beatriz, María Cecilia Botero, John Leguizamo, Jessica Darrow, Angie Cepeda, Carolina Gaitán, Diane Guerrero.

The 60th feature film from the Walt Disney Animation studio, the colorful Encanto provides a heartfelt story with strong Latin American flair that will keep audiences thoroughly entertained.

With songs by Lin-Manuel Miranda, the film tells the story of a small Colombian village protected by magic and watched over by the Madrigal family. The family’s matriarch, Abuela (María Cecilia Botero), was fleeing oppression with her three children when her husband was killed by a pursuing force. Out of anger and despair, she unleashes a magical blast that propels her attackers and creates the encanto, a charmed realm hidden by mountains. The magic protecting the new village is contained in a perpetually lit candle that gives members of the Madrigal family special powers on their fifth birthday, with the exception of Mirabel (Stephanie Beatriz), who is seemingly given no gift.

Now 15 and coping with being the only member of her family without powers, Mirabel finds herself as the key to resolving a prophecy that could mean the end of the encanto and the destruction of her family.

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Among the slew of extras is a sing-along mode that displays lyrics on screen, and the ability to jump to any song in the film.

Featurettes include the 24-minute “Familia lo es Todo” about the film’s strong family themes, the 17-and-a-half-minute “Discover Colombia” about the cultural touchstones of the film, the 24-minute “A Journey Through Music,” the eight-minute “Let’s Talk About Bruno” about a key character and the signature song focused on him, the 10-and-a-half-minute “Our Casita” about the film’s magical living house, and the two-and-a-half minute travelogue “Journey to Colombia.”

There’s also a three-minute clip of outtakes, and four deleted sequences in storyboard form that with filmmaker introductions run a total of about 20 minutes.

Also accompanying the film is the delightful nine-minute animated short Far From the Tree about a family of raccoons that imparts harsh survival lessons down through the generations.

‘Ghostbusters: Afterlife’ Remains Top Overall Disc Seller; ‘Encanto’ Tops Blu-ray Sales Chart

Sony Pictures Home Entertainment’s Ghostbusters: Afterlife remained No. 1 on the NPD VideoScan First Alert chart, which tracks combined DVD and Blu-ray Disc unit sales, the week ended Feb. 12.

However, the “Ghostbusters” sequel dropped to No. 2 on the Blu-ray Disc chart, where Disney’s newest animated film, Encanto, debuted at No. 1.

Encanto, which earned $94 million at the domestic box office, was the No. 2 overall disc seller for the week, selling 95% as many copies as Afterlife. But because 60% of its unit sales were of its Blu-ray Disc editions (40% regular Blu-ray and 20% 4K Ultra HD), compared with 56% for Afterlife (44% regular, 12% UHD), Encanto edged out Afterlife on the Blu-ray Disc chart by 0.67%.

The No. 3 title on both charts was another newcomer, Resident Evil: Welcome to Raccoon City from Sony Pictures Home Entertainment. The seventh “Resident Evil” film is a reboot of the film series based on the popular video game franchise of the same name. It earned $17 million at the domestic box office and sold about 56% as many copies as the top seller.

Paramount Home Entertainment’s Clifford the Big Red Dog slipped two spots to No. 4 on the overall disc sales chart, and was No. 5 on the Blu-ray chart.

The No. 5 overall disc seller, and No. 4 on the Blu-ray Disc sales chart, was Warner’s new adaptation of Dune.

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Several other new releases managed to debut in the top 20 as well. Warner’s King Richard, a biopic about the father of Venus and Serena Williams and how he pushed them to become tennis superstars growing up, was No. 6 overall and No. 10 on the Blu-ray Disc chart. It had 43% of its sales come from HD formats (37% regular Blu-ray, 6% UHD).

No. 11 overall, and No. 6 on the Blu-ray Disc chart, was Warner’s latest animated book movie based on DC characters, Catwoman: Hunted, a crime caper about the Batman villain and love interest. Released only with Blu-ray options (Walmart didn’t offer its usual DVD-only exclusive for DC animated movies), it had 28% of its sales come from 4K Ultra HD discs.

The latest release from the Bruce Willis action-thriller factory, RLJ Entertainment’s Apex, debuted at No. 17. The film was the centerpiece of a recent Red Letter Media video exploring the recent slate of low-budget actioners touting Willis as a star despite his sometimes minimal involvement in the actual plot.

No. 19 on the overall disc sales chart was Stargirl: The Complete Second Season, the latest batch of episodes from the CW live-action superhero show that, like Catwoman: Hunted, also is based on DC Comics characters.

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The Media Play News rental chart the week ended Feb. 13 had Ghostbusters: Afterlife in the top spot for a second week.

Resident Evil: Welcome to Raccoon City and King Richard debuted as the No. 2 and No. 3 rentals, respectively.

Slipping two spots each to round out the top five were Clifford the Big Red Dog at No. 4, and Dune at No. 5.

Top 20 Sellers for Week Ended 2-12-22
Top 20 Rentals for Week Ended 2-13-22
Top 20 Selling Blu-ray Discs for Week Ended 2-12-22
Top 20 Blu-ray Market Share for Week Ended 2-12-22
Sales Report for Week Ended 2-12-22
Digital Transactions Snapshot for Week Ended 2-14-22

Disney’s ‘Encanto’ Climbs to No. 1 on U.K. Home Entertainment Chart

Disney’s animated musical Encanto finally finished No. 1 on the U.K.’s Official Film Chart through Feb. 16 following its release on DVD, Blu-ray Disc and 4K UHD Blu-ray. While this is the seventh consecutive week on the chart for Encanto, the movie previously peaked at No. 3 on digital downloads only.

Warner Bros.’ Dune moved to No. 2, just ahead of Marvel Studio’s Eternals, which climbed back up 20 spots to No. 3 following its release on disc.

Disney-owned 20th Century Studios’ The King’s Man was the highest new entry on the chart at No. 4, and the first of three in the top 10. It’s the third installment in the “Kingsman” franchise, and a prequel to Kingsman: The Secret Service (2014) and Kingsman: The Golden Circle (2017).

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Former No. 1 Ghostbusters: Afterlife (Sony Pictures Home Entertainment) dropped to No. 5, finishing ahead of Universal Pictures’ crime drama House of Gucci at No. 6 — and starring Lady Gaga and Adam Driver in the story behind the family empire that started Italian fashion house Gucci.

MGM’s No Time to Die (distributed in the U.K. by Universal) dropped four spots to No. 7, while Sony’s Resident Evil: Welcome to Racoon City held at No. 8, and Venom: Let There Be Carnage moved to No. 9.

Finally, British drama Boiling Point (Vertigo Releasing) debuted at No. 10 on digital downloads only. The multi award-nominated drama starring Stephen Graham follows the ups, downs and trials of a struggling restaurant on the busiest night of the year.

The Official Film Chart Top 10 – Feb. 16, 2022

Rank Previous Week Movie Distributor
2 1 DUNE (2021) WARNER

© Official Charts Company 2022

Nielsen: Disney’s ‘Encanto’ Breaks Netflix’s Chart Dominance

Netflix has dominated Nielsen’s weekly top 10 streaming video viewership rankings since the latter launched its over-the-top video charts last year.

While the streamer’s programming still accounted for 80% of the most-streamed content across U.S. televisions through the week ended Jan. 16, the animated musical Encanto on the Disney+ SVOD service topped all viewership with almost 1.5 billion minutes streamed. That was up slightly from 1.48 billion minutes streamed the previous week (ended Jan. 9).

The movie also switched spots with Netflix’s enduring series hit, “Cobra Kai,” with 1 billion minutes streamed. That was down from a whopping 2.15 billion minutes in the previous week.

Encanto amazingly gained minutes this week, whereas Netflix’s Don’t Look Up dropped minutes” Brian Fuhrer, Nielsen’s SVP of product strategy, said on the webcast. “Just another example of repeat viewing.”

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Source: Nielsen Streaming Content Ratings (Amazon Prime, Disney+, Hulu, Netflix and Apple TV+), Nielsen National TV Panel, U.S. Viewing through Television.