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Business

Disney movies a hit, but earnings miss target

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Opening sequence

Business

Disney movies a hit, but earnings miss target

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COMING UP:Disney movies a hit, but earnings miss target

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00:00:02
>> This little rabbit may have saved Zootopia but she wasn't able to help Disney's earnings from the cord cutters. Disney's revenue in the first quarter of 2016 rose to nearly $13 billion but that didn't meet expectations. Reuters reporter Lisa Richwine.>> Concerns about cord cutting is definitely at play here.
00:00:21
Disney did note that subscribers had declined a bit in the media and networks unit that includes ESPN and that is something that investors definitely are watching.>> But Disney's movie making machine is a bright spot for the entertainment giant. Zootopia, Disney's animation about a bunny that joins the police force in the animal world, grossed nearly $1 billion worldwide since its March debut following on the even bigger success of Star Wars.
00:00:47
>> They're really riding a winning streak now and I mean, if the movies hadn't done so well, the earnings would be far worse this quarter.>> Disney will also be turning on the revenue tap from a new Disneyland.>> Disney will see a huge investment finally come to next month when the Shanghai park opens, they spent $5 billion on it.
00:01:06
Their earnings this quarter also come as they're looking for somebody to succeed their CEO Bob Iger. The COO unexpectedly departed a few months ago and everybody wants to see who's gonna step into his shoes.>> Already there are reports of crowds and long lines at the trial opening of Shanghai Disneyland, although Hong Kong Disneyland which opened in 2005 also saw huge crowds at the beginning but it took many years before that park could turn a profit.