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ART AND CULTURE - August 2020

Aug 2020

Aug 06, 2020

Disney Focuses on Streaming as it Falls to a Loss

  • Disney plans to release Mulan on its Disney+ streaming site this year and launch a new streaming service outside the US next year as it tries to build on its early streaming success.
  • The new service will operate under the Star brand and stream a wider variety of content than Disney+.
  • Disney+ has already attracted 60.5 million subscribers.
  • But the media giant reported enormous losses due to the pandemic as its theme parks closed.
  • Disney lost $4.7bn (£3.6bn) in the three months to 27 June, as the virus forced it to close theme parks and delay film releases and production.
  • That was down from nearly $1.8bn profit in the same period last year.
  • It said the pandemic was responsible for a $3bn hit to its operating income - mostly due to the disruption to its theme parks, where revenues plunged 85% compared to 2019, chief financial officer Christine McCarthy said.
  • Overall revenue fell 42% compared with last year to $11.8bn.
  • As it grapples with coronavirus disruption, the firm is forging ahead with its streaming ambitions, as it tries to position itself as a rival to Netflix, Amazon and other streaming sites.
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