In their Q3 FY24 earnings report, The Walt Disney Company credits the strong performance of Pixar’s “Inside Out 2” for their increase in entertainment income.
‘Inside Out 2’ Equals Success for Disney
Disney’s entertainment revenue saw only a 4% increase from the prior year’s quarter — from $10,127 million to $10,580 million. But their income increased from $408 million to $1,201 million.
This is in part due to DTC streaming achieving profitability for the first time but also due to the profit of content sales/licensing. Revenue for the latter actually decreased from $2,210 million to $2,112 million, but income increased from a loss of $112 million to a profit of $254 million.
“Inside Out 2” became the highest-grossing animated film of all time, surpassing “Frozen II,” during this quarter. It marks a big comeback for Pixar after years of struggle, and an “Inside Out” Disney+ series is in the works.
Disney also indicates that the release of “Inside Out 2” led users to sign up for Disney+ to view the original 2015 “Inside Out,” which generated more than 100 million views worldwide.
“Kingdom of the Planet of the Apes” was also released during this quarter. “Deadpool & Wolverine” was released after the quarter ended but Disney also points to the Marvel film’s success as a good sign. Collectively, the three films have brought in $2.8 billion at the global box office.
“Our powerful franchises have a multiplier effect across our entire company, providing benefits to our theme parks, cruises, consumer products, and our streaming businesses,” said CEO Bob Iger and CFO Hugh Johnston in a prepared statement.
Disney reported $23.2 billion in total revenue. Disney Parks, which featured “Inside Out 2” meet-and-greets and merchandise, generated $8.3 billion in revenue.
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