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re: Attorney: Disney only has $200M in operational cash, could be in 'corporate death spiral'

Posted on 6/5/23 at 7:44 pm to
Posted by UltimaParadox
North Carolina
Member since Nov 2008
52540 posts
Posted on 6/5/23 at 7:44 pm to
quote:

corporate death spiral


What does this mean?
Posted by wildtigercat93
Member since Jul 2011
116181 posts
Posted on 6/5/23 at 7:47 pm to
quote:

Modern media headline writing 101


You can’t blame the media for you posting random weirdos off your YouTube suggestions as real news
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 6/5/23 at 7:47 pm to
quote:

corporate death spiral


What does this mean?


It's like a regular death spiral, but corporate.
Posted by LSUJuicer
Member since Jan 2013
3971 posts
Posted on 6/5/23 at 8:07 pm to
quote:

The Little Mermaid may not even break even.


This part seems like a huge lie. Worldwide it’s already made more than the budget. It’s still going to have sales when it goes on demand.
Posted by St Augustine
The Pauper of the Surf
Member since Mar 2006
72131 posts
Posted on 6/5/23 at 8:30 pm to
quote:

Disney only has $200M in operational cash,


Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 6/5/23 at 8:32 pm to
quote:

This part seems like a huge lie. Worldwide it’s already made more than the budget. It’s still going to have sales when it goes on demand.


HOLY frick, how many times does this have to be explained to you dumb motherfrickers?


A movie has to have gross ticket sales equal to or greater than 3x its production budget in order to break even.

Do you think theaters don't get paid to show the fricking movie, dipshit?

Even if Disney got 100% of the ticket sales, they still haven't recouped their production, marketing and distribution costs.

Do some research before you post
Posted by Warfarer
Dothan, AL
Member since May 2010
12418 posts
Posted on 6/5/23 at 8:42 pm to
quote:

The theaters actually get a bigger percentage of the ticket sales after the opening weekend. Usually they get 50% of ticket revenue in opening weekend, but that can jump to as much as 70% in week 2 and beyond.


this used to be accurate. The studio got about 80% opening weekend if not 90% but it dropped a chunk each week until the studio was getting about 25% or something after 8 weeks. This is why opening weekends are so important to studios. They probably have better deals cut in China and that is probably why they pander so much to those theaters and countries.

ETA: I wouldn't be shocked if they had something in the 200 mil range in cash. It doesn't mean that they can't leverage the shite out of money and raise 10 billion tomorrow if needed. I wouldn't be shocked to see Disney start selling off some of the streaming stuff they have, it can't be that profitable and it seems to be hurting them in areas.
This post was edited on 6/5/23 at 8:45 pm
Posted by AUFANATL
Member since Dec 2007
5357 posts
Posted on 6/5/23 at 8:49 pm to

They also have to recoup their promotional and marketing costs which can be anywhere from 50-100% of the actual production costs. It's crazy what these big budget movies spend on commercials and promos.

Posted by AUCom96
Alabama
Member since May 2020
7032 posts
Posted on 6/5/23 at 8:52 pm to
The world would be better off without them.
Posted by Indefatigable
Member since Jan 2019
37364 posts
Posted on 6/5/23 at 9:02 pm to
quote:

Could have to leverage assets and sell off properties to free up capital.

They’ve wanted to sell ESPN for a while.
Posted by biglego
San Francisco
Member since Nov 2007
84759 posts
Posted on 6/5/23 at 9:38 pm to
Posted by VoxDawg
Glory, Glory
Member since Sep 2012
77774 posts
Posted on 6/5/23 at 9:58 pm to
quote:

Put george Lucas back in control

Nah, Favreau and Filoni could straighten SW out in 3 years if they Order 66 the hairy-legged bitches currently trying to murder the franchise.
This post was edited on 6/5/23 at 10:00 pm
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 6/5/23 at 9:59 pm to
quote:

The studio got about 80% opening weekend if not 90% but it dropped a chunk each week until the studio was getting about 25% or something after 8 weeks. This is why opening weekends are so important to studios. They probably have better deals cut in China and that is probably why they pander so much to those theaters and countries.




Disney definitely gets more than 50% in opening weekend in international sales, that's not just China. I think I heard 70% is standard for international release. So a film could do poorly domestically and still be profitable if their international sales are high enough.

Aladdin and The Lion King did ok in the US but fricking crushed it in the international market. The Little Mermaid is doing ok domestically, but internationally it is bombing.

Disney may get more than 50% from US theaters, but I wouldn't think it would be much more considering Theaters are still getting paid by Mario, Guardians (yes I know this is Disney), and now Spiderverse. Flash is also going to be very popular, which further weakens their bargaining position. Don't forget that Disney still has to distribute 2 more flops in June alone with Dial of Destiny and Elemental.

Disney is not in a position to demand a bigger cut with Sony and Universal producing better and more popular movies right now.
Posted by skrayper
21-0 Asterisk Drive
Member since Nov 2012
35404 posts
Posted on 6/5/23 at 10:22 pm to
quote:

Disney only has $200M in operational cash


quote:

Disney cash flow from operating activities for the quarter ending March 31, 2023 was $2.262B, a 45.37% increase year-over-year.


Source

It literally took 15 seconds and Google to prove that statement false.

It's still low for Disney, but over 10x what you claim.

Ultimately it's not revenue that's ultimately hurting Disney, but rather costs. Their revenues are still high (they made 82.7 billion in 2022).

Source
Posted by gizmothepug
Louisiana
Member since Apr 2015
8665 posts
Posted on 6/5/23 at 10:34 pm to
quote:

Disney only has $200M in operational cash,


This sounds like my crazy uncle, who I love, but he also spends to much time on social media and believes everything he sees.
Posted by Raz4back
Member since Mar 2011
4021 posts
Posted on 6/5/23 at 11:18 pm to
quote:

Marketing had to be at least $100 million


It’s over 320 million global
This post was edited on 6/5/23 at 11:23 pm
Posted by SEClint
New Orleans, LA/Portland, OR
Member since Nov 2006
49487 posts
Posted on 6/6/23 at 1:07 am to
quote:

 Favreau and Filoni could straighten SW out in 3 years if


George should be involved, I'm loyal to his original vision.

..And wish he never had watched Jurassic park.
This post was edited on 6/6/23 at 1:09 am
Posted by Volvagia
Fort Worth
Member since Mar 2006
53474 posts
Posted on 6/6/23 at 4:18 am to
quote:

Don't forget that Disney still has to distribute 2 more flops in June alone with Dial of Destiny and Elemental.


Why are you expecting Elemental to flop? The trailers seem decent.
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
70096 posts
Posted on 6/6/23 at 4:45 am to
quote:

Why are you expecting Elemental to flop? The trailers seem decent.


Test screenings have gone poorly, Like worse than Strange World.

Expected to have the worst opening in Pixar History.
Posted by skrayper
21-0 Asterisk Drive
Member since Nov 2012
35404 posts
Posted on 6/6/23 at 5:59 am to
quote:

George should be involved, I'm loyal to his original vision.


Eh, George is a good idea guy but needs people to clean up and write the dialog.

The original trilogy is what you get when people are there to stop his bad ideas. The prequels are what you get when he isn’t filtered.
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