Disney Home Entertainment Revenue Down10 Aug, 2005 By: Holly J. Wagner
Revenue for The Walt Disney Co.'s studio entertainment unit was down 15 percent to $1.5 billion for the quarter ended July 2, and its operating income decreased $62 million to a loss of $34 million, but president, COO and CEO-elect Robert Iger is optimistic for the rest of the year.
“Although the studio is facing a challenging environment, we are excited by such upcoming projects as Flight Plan, Chicken Little and The Chronicles of Narnia,” he said.
Executives cited a decrease in worldwide home entertainment revenue for the decline. Unit sales in this year's quarter, which included National Treasure, The Pacifier and Disney/Pixar's The Incredibles, were down compared to the same quarter last year, in which Buena Vista Home Entertainment released Kill Bill: Vol. 1, Disney/Pixar's Finding Nemo, Scary Movie 3, Bad Santa, Brother Bear and Cold Mountain. Buena Vista also saw a decline in home video unit sales for feature films of comparable box-office strength.
Higher worldwide theatrical film distribution, lower film cost writeoffs and improved television distribution results partially offset the losses.
Disney also took a $24 million write-down related to MovieBeam, which the company shuttered late last year.