Disney Headlines for May 18th, 2023

Which Disney animated movies have bombed the worst? And was one of them recently shown in a Florida school, thereby causing conflict?

Also, after Disney did everything Walt Street asked of it, why did the stock drop?

Photo: Disney

We will discuss all these questions in the latest set of Disney Headlines.

Strange World Indeed

Photo: Disney’s Strange World

During the pandemic, Florida wrote some interesting new laws. One of them dictated what teachers could do in classrooms, which is weird.

Anyone who has ever taught is acutely aware that it’s not a “one size fits all” vocation. Every student is different, thereby ensuring every class is as well.

Photo: Disney’s Strange World

Alas, the modified laws prevent teachers from…well, it’s not quite clear as the laws were quickly written and not methodically researched.

Still, sometimes, a Headline catches everyone’s attention due to the absurdity of it. To wit, here’s a (possibly melodramatic) tweet:

My friend showed Disney’s Strange World in a Florida classroom and one student reported it to their parents. Now she’s under investigation by the state.

Florida is not safe for teachers, DO NOT MOVE HERE. pic.twitter.com/rZJPdadz28

— Carl Zee (@c350Zee) May 11, 2023

And here’s the context. Strange World absolutely bombed at the theaters and hasn’t done much better on Disney+.

As such, I wouldn’t be surprised if you knew little about it. However, one of the lead characters is the son of adventurer parents. And he’s gay.

While the story doesn’t emphasize this point often, it does come up a couple of times.

Photo: Disney News

Under Florida’s combined Don’t Say Gay laws, the showing of a Disney animated movie could violate the current rules for teachers.

In fact, this letter suggests that the Florida Department of Education is investigating a class film as a violation of Section 1012.796.

Reportedly, a student told their parent what they had watched in class.

Photo: Cnet

Then, that person, who was presumably Helen Lovejoy, reported it to the authorities. And here we are.

A teacher may lose their job by showing her students one of the least-watched Disney animated movies ever.

Photo: Disney

You can read more about the story here and here. Also, here is my review of Strange World, a charming, harmless, and largely forgettable film that deserved a (modestly) better box office fate.

To me, the greater concern here is that Florida’s Commissioner of Education spells ‘inappropriate’ as ‘inapprororapite.”

Speaking of Disney Bombs…

Image: Disney

Slash Film published a fascinating article the other day. It underscores how even the greatest animation company ever experiences its share of misfires.

The author chronicles the ten Disney animated movies that bombed the most. And yes! Strange World is one of the ten.

In fact, Lightyear also makes the list, thereby emphasizing what a terrible 2022 Disney had with its animated releases.

Those of you familiar with Disney’s recent history can probably guess several other bombs, at least if you remember them.

Box office historians have joked about Mars Need Moms for years. Disney adapted a Berkeley Breathed children’s book, but the film is no Bloom County.

Photo: Disney

Disney spent at least $150 million on Mars Needs Moms, which grossed less than $40 million worldwide. Even Strange World beats that!

As for the other entries on the list, I’ll only spoil one since its presence breaks my heart.

Photo: Disney

For all the story’s splendor, The Emperor’s New Groove cost $100 million to produce but earned a modest $169.7 million. So, yes, it’s sadly a box office disappointment.

I love The Emperor’s New Groove completely, though. “Why do we even have that lever?”

Wall Street Punishes Disney for Doing as Requested

Photo: Washington Post

When you were growing up, do you remember those times your parent(s) asked you to act a certain way? Or maybe they wanted you to perform a chore.

Later, after you did what was asked, your parent found some other reason to fuss, ignoring the forward progress you’d made on the other thing?

Part of the maturation process involves accepting that even when you do the right thing, you sometimes gain the wrong outcome.

Credit: Disney-Pixar

Disney just learned this the hard way after a story from 11 months ago came back to bite the company.

Last June, I recounted how Disney ceded streaming rights to the Indian Premier League (IPL), the top cricket league in the world.

During the early days of Disney+, Wall Street dictated that Disney gain new subscribers by any means necessary.

Photo: BBC

So, Disney used IPL cricket as a loss leader to boost subscription numbers on the subcontinent.

Then, after Netflix reported disappointing revenue during early 2022, fickle Wall Street changed the rules, demanding better profit even at the cost of subscribers.

Photo: Disney

The Mouse dutifully played along, ceding IPL cricket streaming rights that would have cost (at least) $2.6 billion…because that’s what Wall Street wanted.

Due to the arcane nature of Disney+ Hotstar, Disney didn’t lose subscribers immediately. Instead, those customers mostly paid annually.

Photo:Indian Express

They’re not renewing at a rate Disney expected. During the second fiscal quarter of 2023, 4.8 million previous Hotstar subscribers canceled Disney+.

Not coincidentally, Disney+ lost four million subscribers for the quarter. Yes, Disney gained 800,000 subscribers everywhere but the subcontinent.

Photo:amplitude.com

Just as importantly, the Direct-to-Consumer division (DTC) earned $611 million more than a year ago, an increase of 12 percent.

Also, DTC is losing less than half of what it did six months ago. This is all good news, right? Not to Wall Street…

The Latest Stock Drop

Photo: NIMON/SHUTTERSTOCK

I laughed when Disney reported its earnings.

Corporations confirm revenue after the stock market technically closes for the day, but after-hours trading is a thing.

In the moments after Disney described its revenue increase of 13 percent, the stock went up by as much as $2 and dropped by $4. Then, it settled around the closing price.

Photo: Loomis

After a few hours of introspection, investors sold/shorted Disney, causing a temporary (?) loss of $10. And the whole thing has some of us confused.

Those 4.8 million subscribers Disney lost were…not highly profitable. The average revenue per user was $0.59. That’s right, folks!

Photo: The Street

Disney just lost 4.8 million people whose net revenue value to Disney for the past three months would have been about…$2.83 million per month.

Not billion…million. Meanwhile, Disney’s market cap dropped by $16 billion. Not million…billion.

This loss only happened due to a specific decision by Disney to honor Wall Street’s previous request.

Photo: History.com

If not for that, Disney would have gained 5.6 million subscribers this quarter.

Meanwhile, Disney cut expenses, increased revenue, and planned for a more efficient streaming product moving forward, one that married Hulu with Disney+.

Photo: Hulu

Also, the average revenue per user for all international markets other than India increased to $5.93. In North America, the number grew 20 percent to $7.14.

The business you care about, the theme park division, grew 17 percent to roughly $7.8 billion.

Photo: The Walt Disney Company

Oh, and I should reiterate that revenue for the entirety of The Walt Disney Company increased 13 percent from $19.2 billion to $21.8 billion.

So, should you read any Headline that suggests Disney is in trouble, the story is absolute nonsense based on the data.

Any negative stories out there are Wall Street’s fault, not Disney’s.

Photo: MickeyBlog

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