M+E Daily
Disney Credits Home Entertainment For Studio’s Income Surge
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A rise in home entertainment profits helped Walt Disney’s studio division post a 30% increase in operating income for its first quarter, the company announced Feb. 9.
The studio recorded operating income of $243 million on relatively flat revenues of $1.9 billion. Higher domestic home entertainment results were primarily due to lower distribution costs and marketing expenses, driven by cost reduction initiatives, and lower production cost amortization and participation expense.
Disney said the decrease in amortization and participation expense reflected the strong performance of Disney/Pixar’s “Up” and romantic comedy “The Proposal” in the current quarter, compared to “WALL-E” and “The Chronicles of Narnia: Prince Caspian,” which had high participation costs, in 2009.
