Disney (NYSE:DIS) stock fell 2.68% on August 31. The entertainment juggernaut reported a massive loss in the third quarter. Parks and cruises took the biggest hit as activity ground to a halt due to the COVID-19 pandemic. Disney’s film empire has also been dragged in this crisis.
The company had dominated cinemas over the past few years, but theatres have been forced to close across North America.
Fortunately, the launch of Disney+ has been one of the few bright spots. It surpassed 100 million subscribers for its full direct-to-consumer portfolio. This includes Disney+, ESPN+, and Hulu. More than half of those 100 million subscribers migrated to Disney+. In Q3 2020, Disney brought in $11.7 billion in revenue. This fell short of analyst expectations.
Disney shocked many cinema operators with its decision to release Mulan solely on its streaming service. It will premiere on the service on September 4, for a price of $29.99.
Management has said that it views this release as a "one-off" rather than a shift in how business will be done going forward. Still, its success or failure could determine film releases in the future.
Shares of Disney have dropped 8.8% in 2020 as of close on August 31. The stock has increased 12% month over month. Disney has proven that it can take advantage of the stay-at-home environment. However, the broader reopening cannot come soon enough for its other segments.
