Lack of Home Entertainment Releases Contribute to 39% Drop in Q2 Disney Studio Operating Income

A lack of home entertainment releases in the second quarter (ended March 31) contributed to Disney reporting a 39% drop in studio operating income to $534 million compared to operating income of $875.4 million during the previous-year period. Revenue fell 15% to $2.1 billion from $2.4 billion last year.

The decrease in home entertainment results was due to lower unit sales reflecting the performance of Thor: Ragnarok and Star Wars: The Last Jedi in the prior-year record quarter compared to no comparable Marvel or Star Wars titles in the current quarter.

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Other significant titles included Ralph Breaks the Internet in the current quarter and Coco in the prior-year quarter.

The results do not include Marvel Studios’ Avengers: Endgame, which was released in the current third quarter.

Growth in TV/SVOD distribution results was due to a benefit from the adoption of new revenue accounting guidance and increases in domestic pay television title availabilities and rates, partially offset by lower free television sales in part in anticipation of the launch support of Disney+.

Walt Disney Studios Q1 Operating Income Plummets 63%

Mary Poppins and The Nutcracker proved no match for Marvel superheroes and “Star Wars” as The Walt Disney Co. said first-quarter (ended Dec. 29, 2018) operating income at Walt Disney Studios dropped 63% to $309 million from operating income of $825 million during the previous-year period. Studio revenue fell 27% to $1.8 billion from $2.5 billion a year earlier.

The studio on Feb. 5 said lower operating income was due to a decrease in theatrical distribution results, partially offset by growth in TV/SVOD distribution.

Specifically, Disney’s previous-year results from Star Wars: The Last Jedi, Coco and Thor: Ragnarok dwarfed Mary Poppins Returns and The Nutcracker and the Four Realms in the current year. Box office hit Ralph Breaks the Internet was released in the current second quarter.

CFO Christine McCarthy warned theatrical and home entertainment operating revenue would come up short in the current second quarter in the range of $450 million to $500 million compared to the previous-year period — which was the best Q2 ever for the studio.

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Growth in TV/SVOD distribution was due to the performance of Incredibles 2 and Avengers: Infinity War in the current quarter compared with Cars 3 and Guardians of the Galaxy Vol. 2 in the prior-year period.

Overall, the Walt Disney Co. reported earnings per share of $1.84, down 3% from the previous year, when the company posted EPS of $1.89. Total revenue came in at $15.3 billion, about the same as last year.

The down financials nevertheless beat Wall Street expectations. Analysts were anticipating EPS of $1.55 and revenue of $15.18 billion.

Higher revenue from broadcast and parks — run by former Disney home entertainment chief Bob Chapek — offset the declines at Walt Disney Studios.

 

‘Incredibles 2’ Tops November Sales; ‘Avengers: Infinity War’ Takes Over as Year’s No. 1 Title

Walt Disney Studios’ Incredibles 2 topped the list of combined DVD and Blu-ray Disc units sold in November 2018 according to the NPD Group’s VideoScan tracking service.

The latest hit from the Pixar Animation Studio topped the weekly sales chart three of the first four weeks after its Nov. 6 disc debut. Incredibles 2 earned $608.6 million at the domestic box office and marked the sixth time in 2018 that a Disney-owned film topped the monthly chart.

The month’s No. 2 title was 20th Century Fox’s Deadpool 2, an August home video release that jumped back up due to strong sales during the post-Thanksgiving holiday shopping period, when it briefly replaced Incredibles 2 as a top weekly seller.

Sony Pictures’ Hotel Transylvania 3 slipped a spot to No. 3 for the month, with Universal Pictures’ Jurassic World: Fallen Kingdom at No. 4 and Fox’s The Greatest Showman at No. 5.

Newcomer The Meg, the giant-shark movie from Warner Bros. debuted at No. 7.

Jumanji: Welcome to the Jungle at No. 8 gave Sony two films in the top 10, while Fox finished the month with three, as family favorite Home Alone slipped into the No. 10 spot.

Disney also ended up with three movies in the top 10, as its Christopher Robin bowed at No. 6, and the stalwart Marvel blockbuster Avengers: Infinity War came in at No. 9.

The sustained popularity of the third “Avengers” movie has not only built up huge anticipation for next year’s follow-up, as evidenced by the online fervor over the recent Avengers: Endgame trailer, but it also helped shuffle the list of top 10 sellers for 2018 as a whole.

The titles in the top 10 remained the same as the previous month, but Avengers: Infinity War took over the top spot after three months on shelves, displacing Star Wars: The Last Jedi from the perch it had been clinging to most of the year.

The Last Jedi, also from Disney, was released on disc at the end of March and took over the year’s top spot by the end of April. Its strong early sales helped it hold the top spot for seven months, holding off a surge Black Panther, another Marvel effort that is now the year’s No. 3 selling disc (though it also could end up passing Last Jedi by the end of the Christmas season).

In addition, Greatest Showman moved up to the No. 4 position for the year, breaking the lock that Disney had on the year’s top five. Likewise, Jumanji: Welcome to the Jungle took over the No. 5 spot.

Disney’s Coco slipped one spot to No. 6, while Marvel’s Thor: Ragnarok dropped three slots to No. 7, having been overtaken by its Pixar cousin.

Deadpool 2 moved up to No. 8, moving past Warner’s Justice League, which now sits at No. 9 for the year.

Jurassic World: Fallen Kingdom remained No. 10 for the year.

According to NPD, the November 2018 top 10 by units sold were:

  1. Incredibles 2 (Disney)
  2. Deadpool 2 (Fox)
  3. Hotel Transylvania 3 (Sony Pictures)
  4. Jurassic World: Fallen Kingdom (Universal)
  5. The Greatest Showman (Fox)
  6. The Meg (Warner)
  7. Christopher Robin (Disney)
  8. Jumanji: Welcome to the Jungle (Sony Pictures)
  9. Avengers: Infinity War (Disney)
  10. Home Alone (Fox)

 

Year-to-date Top 10 (through November 2018):

 

  1. Avengers: Infinity War (Disney)
  2. Star Wars: The Last Jedi (Disney)
  3. Black Panther (Disney)
  4. The Greatest Showman (Fox)
  5. Jumanji: Welcome to the Jungle (Sony Pictures)
  6. Coco (Disney)
  7. Thor: Ragnarok (Disney)
  8. Deadpool 2 (Fox)
  9. Justice League (Warner)
  10. Jurassic World: Fallen Kingdom (Universal)

 

‘Ant-Man and The Wasp’ Grows Into Top October Seller

Disney Expands Home Video Market Dominance in 2018

Despite generating four of the top-selling DVD/Blu-ray Disc titles in 2017 – including Top 3: Moana, Beauty and the Beast and Rogue One: A Star Wars Story –  Walt Disney Studios Home Entertainment upped its game in 2018.

The studio is primed to end the year with six titles in the Top 10, including Black Panther, Star Wars: The Last Jedi and Coco in the top three with combined disc sales of exceeding $243 million, according to The-Numbers.com.

The home entertainment studio ended the fiscal year (ended Sept. 29) with $1.75 billion in revenue – down 3% from revenue of almost $1.8 billion during the previous-year period.

Revenue reflected a 5% decrease from lower unit sales, partially offset by an increase of 3% from higher average net effective pricing. Lower unit sales were driven by the success of Moana and Finding Dory in the prior-year period compared to Coco and Cars 3 in the current year.

These decreases were partially offset by the release of three Marvel titles and two Lucasfilm titles (The Last Jedi, Solo: A Star Wars Story) in the current year compared to two Marvel titles and one Lucasfilm title (Rogue One) in the prior year. The increase in average net effective pricing was due to higher rates and a higher sales mix of Blu-ray discs, partially offset by a lower mix of new release titles.

Through the end of the fiscal year, the studio had about 1,500 produced and acquired titles, including 1,100 live-action titles and 400 animated titles, in domestic retail channels, according to a Nov. 21 regulatory filing. Disney had approximately 1,600 produced and acquired titles, including 1,100 live-action titles and 500 animated titles, in the international marketplace.

 

 

 

 

 

‘Jurassic World: Fallen Kingdom’ Reigned in September

Universal Pictures’ Jurassic World: Fallen Kingdom topped the list of combined Blu-ray Disc and DVD units sold in September 2018 according to the NPD Group’s VideoScan tracking service.

The dinosaurs-run-amok sequel, which was released on disc Sept. 18, finished the month ahead of a prequel, Walt Disney Studios’ Solo: A Star Wars Story, which was released a week later.

Coming in at No. 3 for the month was Disney’s Hocus Pocus, a perennial Halloween favorite buoyed by a new 25th Anniversary Blu-ray edition released at the beginning of the month to take advantage of the Halloween shopping season. Another Disney family favorite with a Halloween theme and a 25th Anniversary Blu-ray re-release, The Nightmare Before Christmas, landed at No. 8 for the month.

Deadpool 2, from 20th Century Fox, slipped to No. 4 for the month, while the August top seller, Disney’s Avengers: Infinity War, came in at No. 5 in September.

Other September disc releases debuting in the monthly top 10 included Warner’s Ocean’s 8 (released Sept. 11) at No. 6 and Lionsgate’s Hereditary (released Sept. 4) at No. 9.

Jurassic World: Fallen Kingdom entered the year-to-date top 10 chart as 2018’s 10th-best seller, with Deadpool 2 moving up to No. 9. The arrival of Fallen Kingdom pushed Warner’s It off the top 10.

The year’s top five titles, all Disney releases, remained the same from the previous month, though their positions jostled a bit. Star Wars: The Last Jedi is still the No. 1 seller for the year, according to NPD, followed by Black Panther at No. 2.

Avengers: Infinity War moved up to No. 3, with Thor: Ragnarok holding steady at No. 4 and Pixar’s Coco slipping to No. 5.

According to NPD, the September 2018 top 10 by units sold were:

  1. Jurassic World: Fallen Kingdom (Universal)
  2. Solo: A Star Wars Story (Disney)
  3. Hocus Pocus (Disney)
  4. Deadpool 2 (Fox)
  5. Avengers: Infinity War (Disney)
  6. Ocean’s 8 (Warner)
  7. Book Club (Paramount)
  8. The Nightmare Before Christmas (Disney)
  9. Hereditary (Lionsgate)
  10. Tag (Warner)

 

Year-to-date Top 10 (through September 2018):

  1. Star Wars: The Last Jedi (Disney)
  2. Black Panther (Disney)
  3. Avengers: Infinity War (Disney)
  4. Thor: Ragnarok (Disney)
  5. Coco (Disney)
  6. Jumanji: Welcome to the Jungle (Sony Pictures)
  7. The Greatest Showman (Fox)
  8. Justice League (Warner)
  9. Deadpool 2 (Fox)
  10. Jurassic World: Fallen Kingdom (Universal)

 

‘Avengers: Infinity War’ Was Top Disc Seller in August, Outpacing ‘Deadpool 2’

Marvel’s ‘Avengers: Infinity War’ Home Video Sales Spur Q4 Disney Studio Results

Home entertainment sales of Marvel’s Avengers: Infinity War (physical and digital) helped increase Walt Disney Studios’ fourth-quarter (ended Sept. 30) operating income 64.5% ($378 million) to $596 million from $218 million during the previous-year period. Revenue increased 50% to $2.15 billion from $1.43 billion last year.

Infinity War has sold $90.5 million via 2.7 million combined DVD/Blu-ray Disc units since its Aug. 14 retail debut, according to The-Numbers.com. The title is the sixth best-selling title of the year – but only the fifth best Disney title!

Other significant home entertainment titles included Solo: A Star Wars Story, released Sept. 25, while the prior-year quarter included Beauty and the Beast.

For the year, Black Panther, Stars Wars: The Last Jedi, Coco and Thor: Ragnarok rank among the top-five home entertainment releases in 2018.

“We’re very pleased with our financial performance in fiscal 2018, delivering record revenue, net income and earnings per share,” CEO Bob Igersaid in a statement. “We remain focused on the successful completion and integration of our 21st Century Fox acquisition and the further development of our direct-to-consumer business, including the highly anticipated launch of our Disney-branded streaming service late next year.”

Separately, Iger revealed the pending direct-to-consumer streaming service will be called Disney +, featuring original content from Marvel, Pixar and Lucasfilm.

 

 

‘Avengers: Infinity War’ Was Top Disc Seller in August, Outpacing ‘Deadpool 2’

Marvel’s Avengers: Infinity War, from Walt Disney Studios Home Entertainment, was the top seller in August 2018 of combined Blu-ray Disc and DVD units sold according to the NPD Group’s VideoScan tracking service.

The superhero team-up epic, which is just the fourth film to ever earn more than $2 billion at the worldwide box office, landed ahead of 20th Century Fox Home Entertainment’s Deadpool 2 for the month.

Deadpool 2 topped the weekly sales charts for three weeks following its Aug. 21 disc debut, but half of that run carried over into September. Infinity War was released a week earlier on Aug. 14, debuting at No. 1 on the weekly charts before settling in as a close No. 2 during Deadpool 2’s run, giving it the edge in August sales.

Warner Bros. Home Entertainment’s Ready Player One was No. 3 for the August, down from No. 2 in July.

Another Warner title, Life of the Party, debuted at No. 4, having been released in the first week of the August.

Paramount’s Book Club, released Aug. 28, was the No. 5 disc seller for the month.

Warner’s direct-to-video animated superhero actioner The Death of Superman was the month’s No. 6 seller. It debuted at No. 1 on the weekly charts the week following its Aug. 7 release.

The top seller for July, Warner’s Rampage, slipped to No. 7, while Universal Pictures’ Breaking In debuted at No. 8.

Stalwarts Black Panther, from Disney, and The Greatest Showman, from Fox, rounded out the top 10.

The arrival of Infinity War helped Disney take over the top five spots on the year-to-date top 10 chart. The top four remained unchanged from the previous month, with Star Wars: The Last Jedi remaining No. 1 on the list of the year’s top sellers, followed by Black Panther, Coco and Thor: Ragnarok, with Inifinity War moving into the No. 5 spot.

Deadpool 2 entered the chart as the year’s No. 10 seller so far.

According to NPD, the August 2018 top 10 by units sold were:

  1. Avengers: Infinity War (Disney)
  2. Deadpool 2 (Fox)
  3. Ready Player One (Warner)
  4. Life of the Party (Warner)
  5. Book Club (Paramount)
  6. The Death of Superman (Warner)
  7. Rampage (Warner)
  8. Breaking In (Universal)
  9. Black Panther (Disney)
  10. The Greatest Showman (Fox)

Year-to-date Top 10 (through August 2018):

  1. Star Wars: The Last Jedi (Disney)
  2. Black Panther (Disney)
  3. Coco (Disney)
  4. Thor: Ragnarok (Disney)
  5. Avengers: Infinity War (Disney)
  6. Jumanji: Welcome to the Jungle (Sony Pictures)
  7. The Greatest Showman (Fox)
  8. Justice League (Warner)
  9. It (2017) (Warner)
  10. Deadpool 2 (Fox)

 

‘Rampage’ Leads Disc Sales for July

‘Black Panther’ Tops DVD and Blu-ray Sales for May

Marvel Studios’ Black Panther was the top title for the month of May in terms of combined Blu-ray Disc and DVD units sold according to the NPD Group’s VideoScan tracking.

Distributed by Walt Disney Studios Home Entertainment, Black Panther was released on disc May 15 and spent its first three weeks atop the weekly VideoScan sales charts.

Universal’s Fifty Shades Freed, released a week earlier on May 8, finished the month as the No. 2 seller. The top seller from April, 20th Century Fox’s The Greatest Showman, dropped to No. 3.

The strong debut of Black Panther gives Disney the top four spots on the year-to-date disc sales chart through the end of May, with Star Wars: The Last Jedi maintaining the lead it took the previous month.

Pixar’s Coco is No. 2, followed by Marvel’s Thor: Ragarnok at No. 3 and Black Panther at No. 4.

According to NPD, the May 2018 top 10 by units sold were:

  1. Black Panther (Disney)
  2. Fifty Shades Freed (Universal)
  3. The Greatest Showman (Fox)
  4. Peter Rabbit (Sony Pictures)
  5. Red Sparrow (Fox)
  6. Star Wars: The Last Jedi (Disney)
  7. 12 Strong (Warner)
  8. Thor: Ragnarok (Disney)
  9. Game Night (Warner)
  10. Batman Ninja (Warner)

 

Year-to-date Top 10 (through May 2018):

  1. Star Wars: The Last Jedi (Disney)
  2. Coco (Disney)
  3. Thor: Ragnarok (Disney)
  4. Black Panther (Disney)
  5. Jumanji: Welcome to the Jungle (Sony Pictures)
  6. Justice League (Warner)
  7. The Greatest Showman (Fox)
  8. It (2017) (Warner)
  9. Ferdinand (Fox)
  10. Wonder (Lionsgate)

 

‘Last Jedi’ Takes Over Top Sellers for 2018; ‘Greatest Showman’ Leads April Disc Sales

Disney Ups Q2 Home Entertainment Revenue on ‘The Last Jedi’

Strong home media sales of Star Wars: The Last Jedi, Thor: Ragnarok and Coco in the second quarter (ended March 31) contributed to Walt Disney Studios generating a 21% increase in revenue to $2.5 billion, and segment operating income increasing 29% to $847 million.

Studio income grew as well due to increases in theatrical and TV/SVOD distribution results, partially offset by higher film cost impairments.

The increase in theatrical distribution results was due to the blockbuster success of Black Panther, with no comparable Marvel title in the prior-year quarter. This increase was partially offset by the performance of A Wrinkle in Time compared with Beauty and the Beast in the prior-year quarter.

Growth at home entertainment was driven by higher average net effective pricing and an increase in unit sales, both of which reflected the successful March 27 retail release of The Last Jedi.

The studio generated higher Last Jedi Blu-ray and DVD unit sales compared with disc unit sales of Rogue One: A Star Wars Story in the prior-year third quarter. In addition, Thor: Ragnarok and Coco outperformed Moana and Doctor Strange in year-over-year results.

Indeed, Coco and Thor: Ragnarok rank first and third among the top-selling discs in 2018, according to The-Numbers.com, which calculates the titles have brought in than $74 million in combined revenue.

Higher TV/SVOD distribution results were due to international growth and the domestic free television sale of Star Wars: The Force Awakens in the current quarter.

“Our ability to create extraordinary content like Black Panther and Avengers: Infinity War and leverage it across all business units, the unique value proposition we’re creating for consumers with our [direct-to-consumer] platforms, and our recent reorganization strengthen our confidence that we are very well positioned for future growth,” CEO Bob Iger said in a statement.

As expected, Disney’s equity stake in Hulu, which it co-owns with 21st Century Fox, Comcast and Time Warner, generated higher losses for its corporate partners than in the previous-year period. The loss at Hulu was driven by higher programming, marketing and labor costs, partially offset by growth in subscription and advertising revenue.

‘Greatest Showman’ Encores Atop Home Video Charts

The musical The Greatest Showman, from 20th Century Fox, and Star Wars: The Last Jedi, from Walt Disney Studios, repeated as the No. 1 and No. 2 titles, respectively, on the national home video sales charts the week ended April 21.

Two newcomers took the next two spots on both the NPD VideoScan First Alert sales chart, which tracks combined DVD and Blu-ray Disc unit sales, and the dedicated Blu-ray Disc sales chart.

Lionsgate’s The Commuter, an action-thriller with Liam Neeson confronting a conspiracy on a New York passenger train, too the third spot after a $36.3 million box office run in U.S. theaters.

At No. 4 was Fox’s The Post, a Steven Spielberg-directed docu-drama about the dilemmas facing The Washington Post newspaper around the time of the publication of the controversial Pentagon Papers in the 1970s. Starring Tom Hanks and Meryl Streep, the film earned $81.9 million at the domestic box office.

No. 5 on both charts went to Sony Pictures’ Jumanji: Welcome to the Jungle in its fifth week on disc.

The only other top 10 debut was Warner’s direct-to-video sequel Deep Blue Sea 2, which landed at No. 8 overall and No. 11 on the Blu-ray chart.

Blu-ray Disc accounted for 50% of Commuter unit sales, 48% for The Post and 35% for Deep Blue Sea 2.

On the Media Play News rental chart for the week ended April 22, The Commuter debuted at No. 1. Greatest Showman moved up to No. 2 after the end of its week-long delay at Redbox kiosks.

Jumanji: Welcome to the Jungle dropped to No. 3 after four weeks in the top spot.

Rounding out the top five were The Post at No. 4 (skipping its week-long holdback) and Warner’s Father Figures at No. 5.

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