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Hollywood Reporter | Studio Profit Report 2019

Schlorgan

Schlorgan

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Oct 25, 2017
14,932
Salt Lake City, Utah
www.hollywoodreporter.com

Studio Profit Report 2019: Disney Reigns, Netflix Gains

Hollywood majors all made more money in 2019, but with streaming the pricey priority, THR's annual analysis of studio divisions shows that these investments have at some studios already impacted revenue trends.
www.hollywoodreporter.com www.hollywoodreporter.com

While Hollywood has been debating if or how much the rise of streaming services and franchise fatigue is hurting the film business at home, studios' profits for 2019 showed little evidence of pain, rising across the board, in some cases to record levels.

Disney dominated theaters for much of 2019, making it a tough year for its peers at the box office. Overall, theatrical growth abroad — global box office revenue increased 2 percent amid a 4 percent international gain — helped soften the industry's blow of a 4 percent drop in North America. But at other studios, such as Paramount and Universal, increased revenue from content licensing, including to streaming platforms, and lower operating expenses helped lead the way in more than offsetting lower theatrical results.
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8rep_page4-chart_w-embed_2020.jpg


Who will stop this Netflix monopoly? 😋
 
Saucycarpdog

Saucycarpdog

Member
Oct 25, 2017
16,296
I like that Netflix is competing with Hollywood now for films. Means more funding for risky ventures like The Irishman.
 
Dennis8K

Dennis8K

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Oct 25, 2017
20,161
Looks like Disney could afford to pay their park employees a living wage.

Just kidding, SHAREHOLDER VALUE!
 
Mindwipe

Mindwipe

Member
Oct 25, 2017
5,197
London
I still think it's nuts to report Netflix as generating "profit" when they are cash negative and borrowed more than that entire profit.

Accounting rules allow you to do that to reflect investment, but it doesn't give a true reflection of performance in a graph like this.

(Also it's a bit odd to measure by 2019 when some studios financial year isn't calendar).
 

Norwegian Rudo

Banned
Oct 27, 2017
1,078
THEVOID said:
Damn! Netflix generates a ton of revenue.
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Netflix having 30% or so more revenue than Disney is a surprise for sure. You'd think the $2,6 Billion in profit might change the minds of the people on here who are forever going on about Netflix being in dire straits financially, but somehow I don't thing there is anything that would.
 
THEVOID

THEVOID

Prophet of Regret
Member
Oct 27, 2017
22,836
Norwegian Rudo said:
Netflix having 30% or so more revenue than Disney is a surprise for sure. You'd think the $2,6 Billion in profit might change the minds of the people on here who are forever going on about Netflix being in dire straits financially, but somehow I don't thing there is anything that would.
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Because people think short term. Amazon was in the same position for a decade.
 
Dali

Dali

Member
Oct 27, 2017
6,184
They have to be basing Netflix's numbers on Netflix as a service because there's no way the stuff they produced as a studio did those numbers.

Reading the article it does appear this is the case and they admit it's not an apples to apples comparison.

In a first, the latest annual analysis includes a look at Netflix. The streaming giant's business and financials are, of course, not directly comparable to those of the studio units of entertainment conglomerates. For starters, its revenue comes from subscribers that studios don't have, even though other units of traditional studios' parent companies have launched or will soon launch their own streaming services.
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Deleted member 43

Account closed at user request
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Oct 24, 2017
9,271
Dali said:
They have to be basing Netflix's numbers on Netflix as a service because there's no way the stuff they produced as a studio did those numbers.

Reading the article it does appear this is the case and they admit it's not an apples to apples comparison.
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Yeah, it's just the studio divisions vs. all of Netflix (which essentially means the Netflix subscriber revenue).

Still interesting.
 

Deleted member 5666

user requested account closure
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Oct 25, 2017
14,753
Disney had a wild year.

Endgame did over 2 billion. The Lion King, Frozen II, The Rise of Skywalker, Toy Story 4, Captain Marvel, & Aladdin did over 1 billion.

A movie that was only a few hundred mil shy of 3 bil and 6 movies over a billion. INSANE.
 

JJH

Banned
Oct 27, 2017
2,881
Is the Spider-Man IP and Jumanji the only thing keeping Sony afloat?
 
Tetra-Grammaton-Cleric

Tetra-Grammaton-Cleric

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Oct 28, 2017
8,958
Cheebo said:
Yeah I am currently thinking Disney doesn't have a film hit a billion this year. From 7 last year to 0 this year is quite possible.
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I'm curious to see how Black Widow does both here and abroad. Once it releases, it'll have been a year since the last MCU flick and neither this nor The Eternals in November strikes me as locked-in mega-hit despite the power of the Marvel brand.
 

Deleted member 5666

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Oct 25, 2017
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Tetra-Grammaton-Cleric said:
I'm curious to see how Black Widow does both here and abroad. Once it releases, it'll have been a year since the last MCU flick and neither this nor The Eternals in November strikes me as locked-in mega-hit despite the power of the Marvel brand.
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The impact from the coronavirus in the asian markets like China could really hurt Black Widow's overall max total I think.
 

Deleted member 17388

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Schlorgan said:
This was true for movies last year, but looking at the release slate this year, I don't think anything passing $1b is a sure thing, even if they did have China.
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Maybe some domestic overperformer has the best of chances, Wonder Woman 1984 is ticking all the US 80's nostalgia boxes so far... We'll I guess.
 
CrichtonKicks

CrichtonKicks

Member
Oct 25, 2017
11,175
Schlorgan said:
I can totally see it. If Fast 9 stays flat from Fast 8 everywhere else but doesn't have China, it's struggling to pass $700m worldwide.

Gonna be interesting to see what happens when studios can't rely on China to "save" movies that tank domestically.
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I wonder if any high profile movies will delay their worldwide release until the Chinese market is back to normal.
 
Trago

Trago

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Oct 25, 2017
3,600
Damn, Sony, Universal, and Paramount need some hits STAT.

No wonder Sony want a strong hold on Spidey.
 
StudioTan

StudioTan

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Oct 27, 2017
5,836
Mindwipe said:
I still think it's nuts to report Netflix as generating "profit" when they are cash negative and borrowed more than that entire profit.

Accounting rules allow you to do that to reflect investment, but it doesn't give a true reflection of performance in a graph like this.

(Also it's a bit odd to measure by 2019 when some studios financial year isn't calendar).
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They are generating a profit if what they're bringing in is more than what they're spending which is content+infrastructure+debt payments.

Would you also say that someone who has a mortgage and credit cards is making no money from their job because they are in debt?

Profit doesn't measure how much cash you have, it's how much you've spent vs how much you've earned.
 
King Kingo

King Kingo

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Dec 3, 2019
7,656
Just looking at this data makes me think that Netflix acquiring Metro-Goldwyn-Mayer would be both affordable and smart. Netflix's only source of revenue is subscriptions and them merging with MGM Holdings provides Netflix with other secure revenue streams and more media assets.

Schlorgan said:
Of course there is, but there's also not any sure things like Endgame this year.
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The Eternals says hi.

Tetra-Grammaton-Cleric said:
It'll have been a year since the last MCU flick and neither Black Widow nor The Eternals in November strike me as locked-in mega-hit despite the power of the Marvel brand.
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It's cute to see so many people underestimating the power of Eternals. I have absolutely no doubt in my mind that it will hit a billion.
 
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