WALT DISNEY - DISNEY DROPS AGAIN

DISNEY DROPS AGAIN

For its shareholders, the Walt Disney Co. was not the happiest place on earth Wednesday as the giant media conglomerate reported a 46-percent drop in profits for the last quarter, including a 97-percent plunge at its film division. In a conference call, Disney CEO Robert Iger did not blame the economy for the drop in studio revenue. "In this case, it's not the marketplace, it's our slate," Iger said. "It's about choice of films and execution of films that have been chosen for production. And we've had a rough year." Somewhat surprisingly, Disney's ABC broadcast network and ESPN cable network each reported relatively strong sales, with profits slipping just 4 percent. Income at Disney's theme parks dropped 50 percent. About the recent decision to join Hulu.com, Iger said, "We absolutely must be where our consumers are going." He indicated that Disney may also put many of its long-form programs on YouTube, where it already offers short films and cartoons.

06/05/2009