In: Finance
How has/will the covid-19 situation impact Disney's 4 business segments (1. studio entertainment, 2. media networks, 3. direct-to-consumer and international, and 4. parks, experience and products). Explain the impact on revenues, expenses and asset values for the four segments.
Covid-19 is expected to hamper the business of Disney to a very large extent as it has a major business in China so it was impacted very early but now with the whole world is shutting down, the global Business has come to halt as most of the business of Disney's are conducted physically where, there are studio and parks and amusement which will take direct hit.
studio intertainment business had been completely shut for 3 months and it will be continued to be that way in coming months also as the fear of contrarian has not completely gone.
media networks and direct to consumer and international are still operational because they are more of digital business so their business is not going to take as much hit as those physically dependent business of studios and parks
parks of Disney's have been completely shut because of the lockdown announced by several governments and it is not expected to reopen any soon until and unless the fear of contagion is completely wiped off.
Revenues of Disney was mostly related to the Disney studios and media networks so the major contributory of its business will be shrinking in overall revenue and sales operations.
it is not expected to recover anytime soon and impact of coronavirus is not factored in the business as it is yet to record its earnings. However the share price of Disney has fallen drastically giving a hint of its possible future outcomes.