What Disney are your best businesses and what challenges this trading empire faces

With a television business facing major challenges in the streaming era, Disney is investing billions of dollars in its theme parks.

And the bet is paying off.

The global empire of vacation of Disney, including the parks in Florida, California, Tokyo, Paris, Hong Kong and Shanghai and tourist centres, generated operating profits of US$4,500 million in fiscal year 2018, marking an increase of over 100% in the last five years.

Its new strategy includes expanding its cruise line almost double by 2023 and expanding the amusement parks.

For example, two new attractions linked to the marcaStar Wars in the United States will be inaugurated later this year.

The last quarterly report, the company found that the revenue from the theme parks and consumer products increased 5%, reaching US$6.800 million.

Analysts consulted by BBC Mundo estimate that, in general, the parks business has the highest return on investment for Disney.

What is the “Mata Netflix”, the platform Disney wants to compete with the popular streaming service

But as this sector grows, streaming services like Netflix have put pressure on Disney’s businesses in film and television.

What are your main challenges?

“In the short term the challenge is film programming. In the long run, the loss of subscribers on the cable”, tells BBC Mundo Jack Hough, associate editor of Barron’s financial analysis publication.

But the pending task is to confront the decline in viewers who have gradually abandoned the most traditional forms of audiovisual consumption.

In the same vein, Tuna Amobi, an analyst at CFRA financial analysis firm, says the company faces the challenge of an increasingly fragmented industry with intense competition from streaming platforms.

One of Disney’s main challenges is to push “a successful evolution of its potentially revolutionary direct-to-Consumer Product Strategy,” Amobi tells BBC Mundo.

What has Disney done to confront its rivals?

In recent times, Disney has entered the video streaming business with the aim of gaining ground in the television and film industry.

With this vision, the firm launched last year ESPN+, which now has about 2 million subscribers.

What Disney are your best businesses and what challenges this trading empire faces
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