It’s Not Just Disney — NBCUniversal Hit Hard By Theme Park And Theater Closures

TOPLINE

Theme park and movie theater closures due to coronavirus took a big chunk out of NBCUniversal’s revenue in the first quarter of the year, and the situation is not likely to improve any time soon.

KEY FACTS

Key background

NBCUniversal shook up the industry in March when it broke the theatrical window for four of its films. It released Trolls World Tour, which was supposed to debut in theaters on April 10, online for rent, along with three films that had their theatrical runs cut short by coronavirus. It was the right move at the time, NBCUniversal CEO Jeff Shell said on a call with investors, as it allowed those films to recoup profits and, in the case of Trolls, gave kids stuck at home something fresh to watch. After theaters open, which could start to happen gradually as early as June, making films available to rent online while they are still in theaters may become par for the course. “The majority of movies, whether we like it or not, are being consumed at home,” Shell said.

What to watch for

How Peacock, the company’s new streaming service, will change the equation. The service had a soft launch in mid-April and will debut in full in July. Streaming services have been performing incredibly well with the pandemic keeping people at home. However, unlike Disney+ or HBO Max, Peacock, while available for free, will be largely ad-supported.

Chief critic

Wall Street. Comcast’s stock was down nearly 4% on Thursday morning.

Further reading

Saving Disney (Forbes)

Spotify Results Spell Dark Times For Podcasting As Commuters Stay Home (Forbes)

More Than 30 Million People Filed For Unemployment Over The Last Six Weeks (Forbes)

Stocks Fall, Dow Loses 300 Points After Coronavirus Job Losses Surpass 30 Million (Forbes)

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