Walt Disney Co (DIS)’s Star Wars Estimated to Bring in As Much as $2B in Revenue
The saying goes, ‘old is gold’. That seems to be applicable in the case of Walt Disney Co (NYSE:DIS)’s Star Wars that still brought investors back to the counter. The media, as a whole, has undergone a lot of changes in the last over a decade with cable seizing the opportunity and eventually saving the media firms too. However, it was a little bit of a positive surprise to some sections that the company could still find investors’ craziness to the ‘Star Wars’. That is primarily because of the potential it has in delivering revenue to the company. The past justified the investors’ belief.
Restarting The Movie Series
Walt Disney Co (NYSE:DIS) has indicated that it would restart the ‘Star Wars’ series of movies on December 18. This has been received well by the public as it comes after more than ten years of theatrical dormancy. It was a shot in the arm for investors, who have been expecting some positive catalysts to boost its sluggish forecast. The media conglomerate is planning a related film of ‘Star Wars’ once a year until the year 2020. That would probably mean that the ‘Star Wars’ theme park attractions would become ready for launch in California, as well as, Florida.
Significantly, the news has come at a time when the company was struggling to retain its subscribers’ base for ESPN. Nielsen’s last August report indicated that ESPN witnessed three million subscribers loss to 92 million from 95 million in the year-ago period. The media firm acknowledged that it was small erosion, and that dragged not only its stock but the whole of media stocks terming them as ‘cord cutting’. It was a natural worry for investors since ESPN’s cable unit provided nearly 45% of the operating income in its fiscal year 2015. Most recently, Walt Disney Co (NYSE:DIS) reiterated its comment thus dragging down its stock. However, its move on ‘Star Wars’ brought back the investors into its fold.
Estimated Revenue From Star Wars
The moment the media firm indicated its move to restart ‘Star Wars’, different analysts’ started analyzing the impact on its overall financial performance and how it would help investors. Wall Street analysts’ appear to be upbeat on the revenue estimation. MoffettNathanson analyst Michael Nathansom stated that the fixation on ‘Star Wars’ among the analysts were amazing. Some analysts from Wall Street expects ‘Star Wars: The Force Awakens’ would rake in a minimum of $1.5 billion globally. There are others who are predicting as much as $2 billion.
Similarly, Macquarie Securities analyst, Tim Nollen, said that he estimates mountains of related merchandise to add $5 in revenue in the next year. Sanford C Bernstein analyst, Todd Juenger, was amazed by the way Walt Disney Co (NYSE:DIS) diverted the focus of the investors to ‘Star Wars’ from ESPN, which is decelerating. The return of investors has only indicated that the company’s move yielded the expected results.
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