Bob Iger: Disney Lost $75M On ‘Finest Hours’ But Film Unit Profits Are Growing
Disney’s recent film disappointment Finest Hours will cost the studio about $75 million in the current quarter, CEO Bob Iger told investors today at the Deutsche Bank Media, Internet & Telecom Conference.
The film opened in late January and has generated about $40.5 million in global ticket sales.
He mentioned the loss in an account of the movie studio’s successes with blockbusters including Star Wars: The Force Awakens, and Zootopia — which Iger says opened bigger than 2013’s hit, Frozen.
The movie business generated a return on invested capital of about 30% last year, up from about 20% in 2014 and 10% before then.
In response to questions, Iger says he’s upbeat about the prospects for the Shanghai Disney Resort, which opens on June 16. Some 300 million people live within a 3 1/2 hour trip to the site, he says. ...
What's often overlooked about Disney is, when the company is cooking, all the diverse and far-flung parts of the Mouse reinforce and bolster all the other parts.
The amusement parks need content from the movies, the better to build new attractions with which to attract customers. (Who wants to go on the Snow White and the Seven Dwarfs dark ride endlessly?). The merchandising division needs more hot titles to license to eager toy and game companies. The cable networks and New Media sectors have got to be fed a continuing stream of enticing content.
These things have been true of the Disney company almost from its beginning when it was making shorts and licensing stuffed toys. Now that it's become the Berkshire-Hathaway of entertainment conglomerates, hosting not just Disney product but Pixar, Marvel, Lucas, etc., the synergy of its various parts is more hard reality than ever.
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