Walt Disney is known for its amusement parks, movies and merchandise. It has been a multi-billion dollar business venture that has touched lives for generation. Recent reports have shown that while they are meeting their financial expectations, actual revenues have actually fallen. This represents both good and bad news for the media and merchandising company because while they are not breaking the bank, no new revenue is flowing in the way that they might want.
Once reports were turned in for the day, the data showed that their numbers had fallen. This takes place in a context in which there has been overall market decline in the past coupled of days, so it could be that the company will bounce back.
Not including items, earnings rose by nine cents, which was what market analysts expected would happen, but revenue is not keeping up at this point. One reason for this could be because Disney recently bought the rights to the Star Wars franchise which was worth billions of dollars. This has not only been big news in the entertainment industry, but it is also a clue as to why revenue might have taken a dip. With an expenditure of this size it makes sense that there will be some short term stunt in growth. This can likely be expected to pay off big in the longer run as Disney plans to release three new Star Wars films in the next few years.
Analysts estimate that Lucasfilm brings in around $800 million a year, and that this will more than cancel out the slow growth in revenue that Disney has experienced as of late. In addition, they may also find themselves reaping massive profits with not just the new set of films, but from profits related to any of the new and old Star Wars merchandise and media that are available in the market.