The entertainment industry is still figuring out how to operate during the pandemic, and companies are being forced to make tough calls. Daniel Loeb, known as an “activist investor,” has one idea for the Walt Disney Company: Ditch its popular shareholder dividends program and put the money into its streaming services.
Disney has publicly touted its streaming numbers, though analysts say its service Disney+ still has a long way to go. In August, Disney announced that it surpassed 60 million subscribers, putting it far ahead of its projections for the first year. Loeb still thinks there’s room for Disney to grow its streaming service. Engagement on Disney+ content tends to be lower than competitors for viewers older than 10 years old.
Other businesses continue to see the effects of months of industry upheaval. Both NBCUniversal and Warner Media have restructured during the pandemic, and more layoffs are expected at both companies.
Meanwhile, studios’ production and release schedules continue to be in flux. NBCUniversal has pushed the release date of “Jurassic World: Dominion” to 2022.