For Disney, a Stricken Empire
LOS ANGELES — It was once a prospering kingdom, the envy of all the land. But in crept an invisible menace.It could be the story line for a classic Disney movie. Instead, Disney is living it — and happily ever after is nowhere in sight.After a decade of spectacular growth, the entertainment conglomerate has been devastated by the coronavirus pandemic. Its 14 theme parks (annual attendance: 157 million) delivered record profits in 2019. They’re now padlocked. Its movie studios (there are eight) controlled a staggering 40 percent of the domestic box office last year. Now, they’re sitting at a near standstill.“From great to good to bad to ugly,” Michael Nathanson, a leading media analyst, wrote in a report of Disney’s extreme reversal in fortunes. “Recession will cause further pain.”On Tuesday, Disney’s new chief executive, Bob Chapek, and Robert A. Iger, Disney’s executive chairman, will offer their first assessment of the damage. Disney is scheduled to report quarterly results after the stock market closes. Analysts are expecting per-share profit of 88 cents, down 45 percent.The true scale of the pandemic’s impact on Disney will not be known until late summer, when Mr. Chapek reports results for the current quarter — the one in which Disney has furloughed an estimated 100,000 employees, slashed executive pay up to 50 percent and taken out a $5 billion line of credit to bolster its liquidity (on top of $8.25 billion secured in March). The Disney board must decide in June whether to pay the company’s usual summer dividend; management is unlikely to recommend it.Disney turned itself into a colossus over the last 14 years. It bought Pixar, Marvel and the “Star Wars” franchise. Most recently, to withstand Silicon Valley’s incursion into Hollywood, Disney swept up media properties like “The Simpsons” and National Geographic with its $71.3 billion purchase of 21st Century Fox assets.Now, however, Disney’s vastness has become a liability, creating a mind-boggling collection of holdings, some of which are often overlooked: four TV studios that together produce about 70 shows; 42,000 hotel rooms and time-share units across three continents; the world’s largest licensing business, with annual merchandise sales of $55 billion; a publishing arm that churns out children’s books, magazines and digital products in 68 countries and 45 languages; a chain of 25 Disney English schools in China.And that is just the tip of Mickey’s toe. Here is a look at the state of some of its operations:ABCThe good news? ABC, which Disney bought in 1995, has been outperforming rival broadcast networks in recent weeks, according to Nielsen data, as young-adult viewers have flocked to comfort-food ABC shows like “Grey’s Anatomy,” headed toward its 17th season, and “American Idol,” one of the few series still shooting. A whipped-together special, “The Disney Family Singalong,” attracted 13 million total viewers, a big number that underscored the power of the Disney brand, especially among families starved for new content during the shutdown. A second singalong is scheduled for Mother’s Day. More