Disney Studio Revenues Drop17 Nov, 2005 By: Holly J. Wagner
Disney's Studio Entertainment revenues decreased 13 percent, to $7.6 billion, for the year ended Oct. 1, and the company blamed a decrease in studio entertainment segment operating income on poor home entertainment performance.
Current-year titles didn't perform as well as last year's video releases. This year's stars were The Incredibles and National Treasure, while last year's slate included Disney/Pixar's Finding Nemo, Pirates of the Caribbean and The Lion King Platinum release.
Results also reflected a decline in the ratio of home video unit sales to the related total domestic box office results for feature films.
Lower theatrical results for the quarter were ascribed to a decline at Miramax, lower unit sales in worldwide home entertainment and higher film cost write-downs.
The decline at Miramax was primarily due to an increased number of releases in the domestic theatrical market, where losses are typically incurred, and disappointing results for a number of those titles.