Disney, desperate to find new sources of revenue, raised many prices at its theme parks. As is true with almost any price increase, the risk is that it will drive some customers away. (Customers are abandoning these 25 brands.)
According to The Wall Street Journal, the increase comes “amid softness in its linear TV business and challenges in its shift to streaming.” The company has lost billions of dollars in its streaming business. It was launched in November 2019 by Bob Iger, who was CEO then. Recently, he came back for another term.
Streaming would be successful, Iger reasoned, if it was priced low at the start. Indeed, the low price drove the number of subscribers to about 160 million. However, the monthly price needs to be much higher. Additionally, Disney was up against market leaders Amazon and Netflix, with another half a dozen other viable competitors.
Disney has had successful TV properties, led by ESPN and ABC. However, cable companies will not pay as much for these services as they did years ago, and ad revenue has weakened.
Theme parks have always been a crown jewel of the company’s operations. Once they were successful, Disney launched them in other parts of the world. The power of the Disney brand was worldwide.
Today, Disney is under siege from raider Nelson Peltz, and it does not have any way to escape its falling stock price.
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