Disney Films Earn $7 Billion in 2018

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. milestone / ˈmajəlˌstoʊn / (n) – a very important event or step in the progress of something
    Example:

    Receiving an award was a milestone in the director’s career.


  2. make history / meɪk ˈhɪstəri / (idiom) – to do or create something important that will be remembered for a long period of time
    Example:

    He made history by being the first actor to play a female role in a film.


  3. lucrative / ˈluːkrətɪv / (adj) – producing wealth; money-making
    Example:

    I need to look for a lucrative job to earn a lot of money.


  4. forecast / ˈfoɚˌkæst / (v) – to guess that something will happen
    Example:

    Film critics have forecasted the success of the film’s sequel.


  5. blockbuster / ˈblɑːkˌbʌstɚ / (n) – something, usually a book or a film, that is very successful and popular
    Example:

    The film became a blockbuster because of its amazing story.


Article

Read the text below.

Walt Disney Studios made $7 billion in international box office ticket sales in 2018, becoming the only film studio to hit the $7 billion milestone twice. The film giant first made history in 2016 when it earned a combined total of $7.6 billion from both domestic and international box office sales.


Last year, Disney again dominated the global box office with four of the world’s top eight movies coming from its studio. Its superhero films Avengers: Infinity War and Black Panther got first and second place, respectively. The former grossed over $2 billion, while the latter earned nearly $1.35 billion.


Disney had a lucrative year in 2018, but higher revenue is forecasted due to the company’s projected blockbusters in 2019.


The film studio’s reputation for producing high-grossing live-action and animated movies have people anticipating the success of its future releases. Many predict that the sequel to Avengers: Infinity War will top the 2019 box office. Other possible blockbusters include Frozen 2, Toy Story 4, and the live-action version of The Lion King.


The studio owes its record-breaking achievements to its strategy of buying film production companies and franchises or series. Five to 10 years ago, Disney spent over $15 billion to acquire studios and franchises, like Pixar and Marvel.


While some critics said that Disney overpaid the deal, the company managed to maximize it. The deal brought in characters and films that could easily be expanded to other profitable things, such as toys, theme parks, and movie sequels.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think Disney should depend solely on film franchises or series to generate sales from now on? Why or why not?
• Aside from film franchises or series, what else do you think Disney should invest in to boost its profit (e.g. TV shows, anime, book adaptations)? Explain.

Discussion B

• In what situations would you risk acquiring a company for more than its price? Discuss.
• What would you do if that risk did not pay off after five to ten years? Explain.