ORLANDO, Fla. —
Disney held its first-quarter earnings call yesterday and it brought a mix of good and bad news.
The best news for stakeholders -- Disney+ has reached nearly 29 million paid subscribers in just three months.
CEO Bob Iger said they learned a lot with the launch of their streaming service and that he is happy with the fans' reactions to Disney+.
“The Mandalorian” was the clear winner for the streaming service. Executives said subscribers who watched the Star Wars series went on to view ten other titles.
The downside -- Disney+ cost the company $800 million dollars and they expect to lose another $900 million next quarter.
Iger didn’t sound fazed by those numbers, stating they expected large start-up costs before they start making money, similar to the profit pattern Netflix saw.
The coronavirus was also brought up after Disney decided to close both their Shanghai and Hong Kong parks. The company reports the outbreak could cost nearly $175 million if the parks are not re-opened soon.
Back in the states, Disney said theme park attendance was up two percent this quarter. Iger said he expects that number to grow even more in the coming months now that both Galaxies Edge in Disneyland and Disney’s Hollywood Studios are open.
Iger did not say if park ticket prices would increase to make up for the construction of both lands going over budget.
Iger was quick to bring up the massive success the company had in movie theaters last year. The studio brought in more than $11 billion, marking a new industry record.
However, he cautioned investors not to expect the same profits this year. Much of that success came from franchises like "Frozen," "Star Wars" and "Toy Story" -- all of which have no new films coming out this year.
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