'For Walt Disney Co., a Stricken Empire' diff viewer (5/6)

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For Walt Disney Co., a Stricken Empire	For Walt Disney Co., a Stricken Empire
2020-06-09 22:22:01 UTC	2020-06-13 04:12:36 UTC (3 days later)
LOS ANGELES — It was once a prospering kingdom, the envy of all the land. But in crept an invisible menace.	LOS ANGELES — It was once a prospering kingdom, the envy of all the land. But in crept an invisible menace.
It could be the story line for a classic Disney movie. Instead, Disney is living it — and happily ever after is nowhere in sight.	It could be the story line for a classic Disney movie. Instead, Disney is living it — and happily ever after is nowhere in sight.
After a decade of spectacular growth, the entertainment conglomerate has been devastated by the coronavirus pandemic. Its 14 theme parks (annual attendance: 157 million) delivered record profits in 2019. They’re now padlocked. Its movie studios (there are eight) controlled a staggering 40 percent of the domestic box office last year. Now, they’re sitting at a near standstill.	After a decade of spectacular growth, the entertainment conglomerate has been devastated by the coronavirus pandemic. Its 14 theme parks (annual attendance: 157 million) delivered record profits in 2019. They’re now padlocked. Its movie studios (there are eight) controlled a staggering 40 percent of the domestic box office last year. Now, they’re sitting at a near standstill.
“From great to good to bad to ugly,” Michael Nathanson, a leading media analyst, wrote in a report of Disney’s extreme reversal in fortunes. “Recession will cause further pain.”	“From great to good to bad to ugly,” Michael Nathanson, a leading media analyst, wrote in a report of Disney’s extreme reversal in fortunes. “Recession will cause further pain.”
On Tuesday, Disney’s new chief executive, Bob Chapek, and Robert A. Iger, Disney’s executive chairman, will offer their first assessment of the damage. Disney is scheduled to report quarterly results after the stock market closes. Analysts are expecting per-share profit of 88 cents, down 45 percent.	On Tuesday, Disney’s new chief executive, Bob Chapek, and Robert A. Iger, Disney’s executive chairman, will offer their first assessment of the damage. Disney is scheduled to report quarterly results after the stock market closes. Analysts are expecting per-share profit of 88 cents, down 45 percent.
The true scale of the pandemic’s impact on Disney will not be known until late summer, when Mr. Chapek reports results for the current quarter — the one in which Disney has furloughed an estimated 100,000 employees, slashed executive pay up to 50 percent and taken out a $5 billion line of credit to bolster its liquidity (on top of $8.25 billion secured in March). The Disney board must decide in June whether to pay the company’s usual summer dividend; management is unlikely to recommend it.	The true scale of the pandemic’s impact on Disney will not be known until late summer, when Mr. Chapek reports results for the current quarter — the one in which Disney has furloughed an estimated 100,000 employees, slashed executive pay up to 50 percent and taken out a $5 billion line of credit to bolster its liquidity (on top of $8.25 billion secured in March). The Disney board must decide in June whether to pay the company’s usual summer dividend; management is unlikely to recommend it.
Disney turned itself into a colossus over the last 14 years. It bought Pixar, Marvel and the “Star Wars” franchise. Most recently, to withstand Silicon Valley’s incursion into Hollywood, Disney swept up media properties like “The Simpsons” and National Geographic with its $71.3 billion purchase of 21st Century Fox assets.	Disney turned itself into a colossus over the last 14 years. It bought Pixar, Marvel and the “Star Wars” franchise. Most recently, to withstand Silicon Valley’s incursion into Hollywood, Disney swept up media properties like “The Simpsons” and National Geographic with its $71.3 billion purchase of 21st Century Fox assets.
Now, however, Disney’s vastness has become a liability, creating a mind-boggling collection of holdings, some of which are often overlooked: four TV studios that together produce about 70 shows; 42,000 hotel rooms and time-share units across three continents; the world’s largest licensing business, with annual merchandise sales of $55 billion; a publishing arm that churns out children’s books, magazines and digital products in 68 countries and 45 languages; a chain of 25 Disney English schools in China.	Now, however, Disney’s vastness has become a liability, creating a mind-boggling collection of holdings, some of which are often overlooked: four TV studios that together produce about 70 shows; 42,000 hotel rooms and time-share units across three continents; the world’s largest licensing business, with annual merchandise sales of $55 billion; a publishing arm that churns out children’s books, magazines and digital products in 68 countries and 45 languages; a chain of 25 Disney English schools in China.
And that is just the tip of Mickey’s toe. Here is a look at the state of some of its operations:	And that is just the tip of Mickey’s toe. Here is a look at the state of some of its operations:
The good news? ABC, which Disney bought in 1995, has been outperforming rival broadcast networks in recent weeks, according to Nielsen data, as young-adult viewers have flocked to comfort-food ABC shows like “Grey’s Anatomy,” headed toward its 17th season, and “American Idol,” one of the few series still shooting. A whipped-together special, “The Disney Family Singalong,” attracted 13 million total viewers, a big number that underscored the power of the Disney brand, especially among families starved for new content during the shutdown. A second singalong is scheduled for Mother’s Day.	The good news? ABC, which Disney bought in 1995, has been outperforming rival broadcast networks in recent weeks, according to Nielsen data, as young-adult viewers have flocked to comfort-food ABC shows like “Grey’s Anatomy,” headed toward its 17th season, and “American Idol,” one of the few series still shooting. A whipped-together special, “The Disney Family Singalong,” attracted 13 million total viewers, a big number that underscored the power of the Disney brand, especially among families starved for new content during the shutdown. A second singalong is scheduled for Mother’s Day.
Still, ABC urgently needs a new generation of hits, and shooting was halted on 14 pilots. Cameras are still months away from rolling again. (Writing has continued.) Television advertising is weakening in the dismal economy, analysts say, hurting both ABC nationally and the eight local ABC stations that Disney owns. Political ad spending in the fall will “offset the carnage,” Mr. Nathanson said on a conference call with clients.	Still, ABC urgently needs a new generation of hits, and shooting was halted on 14 pilots. Cameras are still months away from rolling again. (Writing has continued.) Television advertising is weakening in the dismal economy, analysts say, hurting both ABC nationally and the eight local ABC stations that Disney owns. Political ad spending in the fall will “offset the carnage,” Mr. Nathanson said on a conference call with clients.
Disney has four ships (total passenger capacity: 13,400) with three more under construction, at a cost of roughly $1 billion each. Disney’s private Caribbean island, Castaway Cay, serves as a port of call, and Disney is spending hundreds of millions of dollars to build a second island destination.	Disney has four ships (total passenger capacity: 13,400) with three more under construction, at a cost of roughly $1 billion each. Disney’s private Caribbean island, Castaway Cay, serves as a port of call, and Disney is spending hundreds of millions of dollars to build a second island destination.
But the Centers for Disease Control and Prevention on April 9 extended its no-sail order until further notice. Even when ships do begin sailing again, demand is expected to be soft. One lucky break: Those new Disney ships will likely be delayed (the first was originally scheduled to set sail in 2022) because the German shipyards building them are closed.	But the Centers for Disease Control and Prevention on April 9 extended its no-sail order until further notice. Even when ships do begin sailing again, demand is expected to be soft. One lucky break: Those new Disney ships will likely be delayed (the first was originally scheduled to set sail in 2022) because the German shipyards building them are closed.
Disney’s major streaming services — Hulu and Disney Plus — have been sizzling as the home-quarantining masses seek out entertainment.	Disney’s major streaming services — Hulu and Disney Plus — have been sizzling as the home-quarantining masses seek out entertainment.
Disney Plus has been particularly impressive. The company pressed ahead with a previously planned rollout of its signature streaming service in Europe in March. Disney Plus now has more than 50 million subscribers. Disney will introduce the service in more than 40 additional countries, mostly in Central and South America, by the end of the year.	Disney Plus has been particularly impressive. The company pressed ahead with a previously planned rollout of its signature streaming service in Europe in March. Disney Plus now has more than 50 million subscribers. Disney will introduce the service in more than 40 additional countries, mostly in Central and South America, by the end of the year.
The production shutdown will almost certainly delay Marvel shows like “The Falcon and the Winter Soldier,” which was supposed to arrive in August. But the service’s big hit, “The Mandalorian,” finished shooting its second season before the pandemic spread to the United States and will arrive in the fall on schedule. Mr. Nathanson estimates that Disney Plus will lose $2 billion this year, with programming a major expense.	The production shutdown will almost certainly delay Marvel shows like “The Falcon and the Winter Soldier,” which was supposed to arrive in August. But the service’s big hit, “The Mandalorian,” finished shooting its second season before the pandemic spread to the United States and will arrive in the fall on schedule. Mr. Nathanson estimates that Disney Plus will lose $2 billion this year, with programming a major expense.
Disney Theatrical Productions had 29 productions on four continents that were either already running or were set to open by early 2021; all are on pause. They range from the Broadway megahit “The Lion King,” which has been running since 1997, to the touring “Hunchback of Notre Dame” in Japan. The theatrical unit also has seven Disney on Ice arena tours.	Disney Theatrical Productions had 29 productions on four continents that were either already running or were set to open by early 2021; all are on pause. They range from the Broadway megahit “The Lion King,” which has been running since 1997, to the touring “Hunchback of Notre Dame” in Japan. The theatrical unit also has seven Disney on Ice arena tours.
Live theater is likely to be among the last segments of the economy to recover because it involves large gatherings in closed spaces and also requires putting performers in proximity with one another. (How do you social distance in an orchestra pit?) Broadway is unlikely to reopen before Labor Day, and may not reopen until next year.	Live theater is likely to be among the last segments of the economy to recover because it involves large gatherings in closed spaces and also requires putting performers in proximity with one another. (How do you social distance in an orchestra pit?) Broadway is unlikely to reopen before Labor Day, and may not reopen until next year.
But the division professes optimism. “We believe in the business of theater and expect that — when it’s safe to gather — there will be a greater appetite for it than ever,” a spokesman said.	But the division professes optimism. “We believe in the business of theater and expect that — when it’s safe to gather — there will be a greater appetite for it than ever,” a spokesman said.
Shanghai Disneyland, closed since January, is expected to reopen its main gates to a limited number of visitors in the next two-to-three weeks. With Florida starting to ease restrictions, Walt Disney World will likely follow.	Shanghai Disneyland, closed since January, is expected to reopen its main gates to a limited number of visitors in the next two-to-three weeks. With Florida starting to ease restrictions, Walt Disney World will likely follow.
When Disney World gradually reopens, park goers are expected to have their temperatures taken as they enter and be required to stand six feet apart while waiting in line for rides. Disney can’t afford to have its parks join meatpacking plants and nursing homes as coronavirus hot spots. “There’s far more risk than reward to Disney reopening parks too soon,” said Steven Cahall, a Wells Fargo analyst.	When Disney World gradually reopens, park goers are expected to have their temperatures taken as they enter and be required to stand six feet apart while waiting in line for rides. Disney can’t afford to have its parks join meatpacking plants and nursing homes as coronavirus hot spots. “There’s far more risk than reward to Disney reopening parks too soon,” said Steven Cahall, a Wells Fargo analyst.
~~Updated June 5, 2020~~	Updated June 12, 2020
	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.	So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.	A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.	The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Will people even want to frolic in theme parks again? Disney executives believe that there is enormous pent-up demand for public activities, pointing to the 40,000 people who swarmed a California beach when it reopened last month.	Will people even want to frolic in theme parks again? Disney executives believe that there is enormous pent-up demand for public activities, pointing to the 40,000 people who swarmed a California beach when it reopened last month.
Some of the 312 Disney Store locations in the United States, Europe, Japan and China are on the cusp of reopening, including a few located in malls operated by Simon Property Group. In recent weeks, Disney’s online store, ShopDisney.com, has seen a flood of new customers, with items like sleepwear, puzzles and Mickey Mouse waffle makers in high demand. On Thursday, Disney started selling cloth face masks with characters printed on them ($20 for a four-pack) and said the first $1 million in profit would be donated to a medical supplies nonprofit; the company has already reached that threshold.	Some of the 312 Disney Store locations in the United States, Europe, Japan and China are on the cusp of reopening, including a few located in malls operated by Simon Property Group. In recent weeks, Disney’s online store, ShopDisney.com, has seen a flood of new customers, with items like sleepwear, puzzles and Mickey Mouse waffle makers in high demand. On Thursday, Disney started selling cloth face masks with characters printed on them ($20 for a four-pack) and said the first $1 million in profit would be donated to a medical supplies nonprofit; the company has already reached that threshold.