Cutouts


Disney makes 55% profit on consumer product sales. Will Netflix get on the same strategy?  

added about 1 month ago by @icyflame ARCHIVES

business profit disney    

For Disney, consumer products are the earnings gifts that keep on giving — even during a pandemic. While revenue tied to its theme parks and cruise ships tumbled more than 40% in the fiscal year that ended in early October, merchandise licensing and retail revenues were down just 7%. In the latest quarter, Disney earned about 55 cents in profit for every dollar of consumer-product sales. This line of business consistently contributes more than $1.5 billion of operating income per year, and licensing carries much higher margins than producing a series that viewers binge in one sitting. In 2012, the Hollywood Reporter said that lifetime sales of “Star Wars” licensed goods had reached $20 billion, and that was before Disney acquired it.

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