As current events have left major entertainment venues such as the Disney family of theme parks closed for an extended period of time, the losses reported were bound to be massive. Today has confirmed that much for the happiest places on Earth, as the Walt Disney Company’s latest quarterly earnings call has put a price tag to what the company has lost during the shutdown. If the numbers hold, it sounds like around $1 billion was lost due to this worldwide crisis, and Mickey Mouse is probably crying in Cinderella’s castle right about now.
With all Disney Parks closed at the moment, the Walt Disney Company has gone on record during today’s call as stating that huge hit is the figure that’s directly attributed to the parks being closed. As the COVID-19 crisis started things off by closing the Hong Kong and Shanghai Disney parks this past January, it was always known that there’d be a big financial cost when all was said and done
But with some specific details being provided during today’s earnings, the losses are attributed to some very specific areas. About half of those $1 billion losses come from the closures of both the Disneyland and Walt Disney World parks, with the rest of the difference being made up by international parks and the Disney Cruise Line.
Right about now, various parties are trying to figure out plans for grand re-openings in the wake of the coronavirus crisis continuing to concern the public and government officials alike. The Walt Disney Company is definitely among those who are looking to turn the lights back on as safely, but as quickly, as possible.
Between formulating plans to reopen Walt Disney World, and with an intended reopening of Shanghai Disney being mentioned for May 11, it looks like the recovery may begin in earnest in the near future. Though some analysts think that in the case of the Florida park, the gates won’t be open until January 2021.
We’ll have to wait and see what happens next when it comes to the future of Disney Parks. For now, it looks like the strategy going forward will have to take into account that for as long as the parks are closed, the losses will potentially stretch into the next quarter or two.
Which means that The Walt Disney Company will have to get creative with other divisions, especially those dealing with entertainment, in order to stem the bleeding. And with a whopping six movies set to open towards the end of the year, a bit of strategic release date shuffling could help in a massive way.