One of the biggest challenges the Walt Disney Company is facing is the effects of the coronavirus pandemic. During this pandemic, the company has been forced to shut down operations of all its global theme parks for a significant amount of time. The company has lost over $5 billion dollars in the three months the parks were closed and have offset their losses with other branches of the company, including Disney’s media networks, but are still reporting a nearly $2 billion dollar loss from the theme parks alone in their third quarter (Tate, 2020).
Unfortunately, asides from reducing their workforce and operating expenses, the theme parks will continue operating at a loss until the pandemic is under control and restrictions have been lifted. Because of this, the recommended solution would be to increase the revenue through the other branches of the company to increase revenue to the keep the parks afloat.
During the past 7 – 9 months, Disney has been focusing on their revenue’s coming in from Disney media network which provides streaming media services from Disney Plus, Hulu, ESPN, and more.
As the consumer is forced to stay at home, increasing subscriptions to media networks are helping drive this market to increased revenue. The competition for streaming media is tight with successful companies like Netflix and Amazon Prime video in close competition. The goal is for Disney Plus and Hulu to gain more subscribers and to create original content that can only be streamed on these platforms. This will give Disney an edge in the digital streaming market and be able to retain its theme park operations during this global crisis.
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