Coronavirus could impact Disney consumer behaviour
Walt Disney Co said on Thursday the spread of the coronavirus could lead to consumer behaviour changes, further disrupting its business.
The warning raised speculation that media and entertainment businesses could change in fundamental ways.
The company has already closed its theme parks, suspended cruises and theatrical shows, delayed film distribution, and taken a hit to its supply chain and ad sales.
Long-term changes in consumer behaviour could include lower attendance at movie theatres and parks, more subscribers to its Disney+ streaming service, and fewer viewers of live TV.
In its filing, Disney cited disruption in the creation and availability of content, including the cancellation of certain sports events and the shutting down of most film and TV production.
The effect of the coronavirus on capital markets could affect borrowing costs, Disney added.
Moody’s said on Tuesday it expected Disney’s park closures and cruise ship suspensions to be temporary, hurting margins and adding to the $175 million operating income hit taken by its parks, experiences and products division due to park closures in China.
Shares of Disney rose 6% to $93.79 shortly after midday.
(Content and photos syndicated via Reuters)