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DISNEY EARNINGS RISE -- EXCEPT FOR STUDIO UNIT
Wednesday, August 10 2005
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Disney's latest quarterly report looked much like a balloon animal created by a party entertainer. Parts of the company, like TV and theme parks, expanded significantly while other parts, like movies and DVD sales, deflated. All told, however, the company's profits rose 41 percent to $851 million, versus $604 million for the comparable quarter a year ago. Profits for ABC, its owned TV stations, and ESPN were up 48 percent from a year ago. ABC in particular was aided by the hit shows Desperate Housewives and Lost. However, the company's movie studio division saw a $34-million loss, primarily due to soft DVD sales. In a conference call with analysts, incoming Disney CEO Robert Iger urged the movie industry to rethink its policy of releasing movies on DVDs months after they are shown in theaters. He suggested that it might be wise to release them on both platforms simultaneously. "I think all the old rules should be called into question because rules of consumption have changed," Iger said.
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