Disney is mostly a television company

According to The Atlantic’s Derek Thompson, individual box office flops like The Lone Ranger aren’t a huge problem for Disney because a majority of its revenue comes from its broadcast and cable television divisions. Cable is here to stay for the foreseeable future – as long as that’s true, Disney properties like ESPN and the Disney Channel will continue to do just fine: 

How Disney makes money

The movie business is a rotten thing. American audiences don’t go the movies every week, so they have to be lured with egregiously expensive marketing campaigns for a handful of tentpole movies that, if they blow up, can destroy quarterly earnings for the film division and take down careers. The TV business is somewhat the opposite. The subscription fee model (wherein a sliver of your cable bill goes straight to the networks’ pockets) guarantees that cable networks get paid with or without a “hit.”

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