- Media companies, along with the rest of the economy, are being strained by the coronavirus pandemic.
- Business Insider breaks down the biggest impact on media businesses so far, including the closures of Disney’s parks around the world and the companies most threatened by the spread of the virus.
- Visit Business Insider’s homepage for more stories.
TV and film productions are being put on hold, major sporting events are being canceled or postponed, and theme parks are closing their gates as businesses and governments try to slow the spread of the coronavirus globally.
The media industry, along with the rest of the economy, is being strained by the pandemic.
The companies most exposed to the threat are those that generate significant shares of their revenue from theme parks, the box office, or advertising – all of which could be threatened by the coronavirus outbreak or a broader economic downturn.
Wall Street firm UBS forecasted that Disney was the media company most threatened by the spread of coronavirus, followed by:
- Discovery
- Fox
- ViacomCBS
- AMC Networks
See the breakdown: Analysts say Disney and Discovery are the media giants most threatened by the coronavirus, but Comcast could fare better
Disney's new CEO Bob Chapek is being tested as a leader. The media giant has been forced to temporarily shutter its parks globally. UBS estimated Disney could lose more than $2 billion in revenue if its parks close for 30 days.
If Disney hadn't taken the rare step of closing its parks, the media giant's image may have suffered more.
As it was, Abigail Disney, whose grandfather was Disney cofounder Roy O. Disney and granduncle was Walt Disney, slammed the company on Twitter on Monday, in response to photos that seemingly showed large crowds at Disney World's Magic Kingdom on Sunday night before the park closed because of coronavirus concerns.
Beyond parks, Disney has started pushing theatrical releases, and TV and film productions, as other studios take similar steps.
The company's cable networks, including ESPN, could also be hurt by the canceled sporting events, including the suspension of the current NBA season and the delay of the upcoming MLB season. Analysts say it's too soon to estimate the damage to the networks, since it depends on the specific wording in networks' contracts with the leagues.
Over the weekend, Disney released "Frozen 2" on its streaming service, Disney Plus, months earlier than planned, and made "The Rise of Skywalker" available for digital purchase a few days earlier, to bolster one bright spot: its digital businesses.
Netflix, meanwhile, is expected to benefit from the social distancing that's being encouraged by governments around the world. More time at home could mean more opportunities to stream Netflix.
But there could be downsides for Netflix's business as well.
The streaming company is counting on a boost in subscribers and revenue from international markets this year, including regions like Europe and Asia that are among the worst hit by the pandemic, analysts at Needham said. People in those areas may be less incentivized to subscribe to Netflix if they're worried about their next paychecks.
Read the full story: Why Netflix's business could take a hit from the coronavirus, despite reports that 'stay at home' stocks could benefit