Disney Posts an Unexpected Rise

Despite its own expectations, Disney posted a small rise in quarterly earnings. This unexpected rise was due to many factors, but primarily the continued booming success of ESPN, and increased revenue from the ABC family channel. Many of the events of the past year have adversely affected Disney. The elevated terror warnings and continuous concern about attacks on U.S. soil have contributed to a decrease in patrons at Disney's theme parks. While the actual number of tourists (especially international tourists) exceeded their own expectations, the levels are not close to where they would like it to be.

Disney also suffered some more than modest failings at the box office. Two of its big budget summer films, Around the World in 80 Days and The Alamo proved lackluster performers at the box office. To make matters worse, Disney's strength was rumored to have diminished after Pixar Animation Studios opted to stop working for Disney and start working for themselves.

While at times over the last quarter, Disney looked like it might post substantial losses in the quarterly earnings, it has a somewhat brighter future ahead of it. Two of ABC's shows, Desperate Housewives and Lost are proving to be critical and viewer favorites, which will increase advertising revenue throughout the run of those shows. However, much of Disney's future is also not so clear. Many have questioned whether Disney can now create a successful animated feature without the aid of Pixar.

While Disney is quite happy with its unexpected rise in quarterly earnings, the future is quite unclear for a company that is not used to dealing with difficult times. It will be very interesting to watch as they deal with the challenging situations it has found itself in.

Although the future of Disney animated films may be in a state of jeopardy, I believe the company itself will thrive long into the future. ABC is currently drawing huge numbers with some hit shows, and ESPN will more than likely always remain a huge sell. Disney has such a diverse appeal and market that it will adapt to changing times and continue to be strong for the immediate future.