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Following the announcement by The Walt Disney Company noting an unsurprising 53% revenue decline for its Parks, Experiences and Products segment;

Rheanna Norris, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers her view:

“High post-pandemic travel demand will allow Disney to easily return its parks, experiences and products to profit if – and a big if – operating capacities are lifted. Open parks are currently operating at 35% capacity, however, running costs are still there – and many do not decline with lower visitor numbers. As the company has global operations, capacity reduction will rely heavily upon vaccination rollout. As the progress of this differs across the world, some parks will revive quicker than others.

“Disney+ was released very much at the right time – had it not, the whole company would be in a much worse position. This platform may well also support its parks, as the push of highly popular Disney+ content – the Mandolorian TV series and characters such as Grogu (Baby Yoda) – presents opportunities for constant improvement of attractions at Disney Parks in the future. This, combined with pent-up demand will allow for increased interest in the brand and ultimately drive visitation post-pandemic.”

The timely release and surge of Disney+ has allowed the Walt Disney Company to turn a profit of $17m, despite some losses elsewhere.

Danyaal Rashid, Thematic Analyst at GlobalData, adds his view on the company’s digital platform:

“The service is barely a year old and has hit 94.9 million subscribers, surpassing the 2024 target of 60-90 million. All in all, Disney’s streaming services – Disney+, Hulu, and ESPN+ – have 146.4 million subscribers worldwide. This shows that Disney firmly has its sights set on Netflix’s 200 million benchmark, a number that it is not as far away from as people think.”