Disney Ups Q3 Operating Income 15%4 Aug, 2015 By: Erik Gruenwedel
Home entertainment undermined by year-over-year ‘Frozen’ comparisons
Walt Disney Studios Aug. 4 reported third-quarter (ended June 27) operating income of $472 million, up 15% from operating income of $411 million during the previous-year period. Revenue increased 13% to $2 billion, from $1.8 billion a year ago.
The studio, which includes Walt Disney Studios Home Entertainment, attributed quarterly results to higher theatrical revenue from Marvel’s Avengers: Age of Ultron ($1.4 billion globally) compared with Captain America: The Winter Soldier ($714 million) a year ago. The studio last year also generated revenue from Cinderella ($539 million) offset by theatrical results from Tomorrowland ($204 million) this year.
The decrease in home entertainment revenue was due to unfavorable unit sale comparisons from juggernaut Frozen in the prior-year period with Big Hero 6 this year.
Ironically, Big Hero 6 currently ranks as the top-selling home entertainment of 2015 with more than 4.8 million combined DVD and Blu-ray Disc units sold, generating $87.1 million in revenue, according to The-Numbers.com.
Yet, that pales in comparison to Frozen, which sold more than 18.1 million discs and generated nearly $335 million in sales in 2014. Indeed, Frozen has sold another $20 million in disc sales this year.
The home entertainment results do not include electronic sellthrough and transactional VOD.