Disney's 'Toy Story 5' Boosts Earnings, Theme Park Attendance

Disney's earnings report for the June quarter exceeded expectations, driven by the massive success of 'Toy Story 5'. The film not only performed well at the box office but also boosted sales of merchandise and attracted more visitors to Disney's theme parks. The company reported a revenue increase of 7% from last year, reaching $25.2 billion.

The successful film was one of several factors contributing to Disney's growth. The Parks and Experiences division saw a 10% revenue boost, with a 4% increase in attendance at its global theme parks and a 3% rise at domestic parks. Operating income for this segment rose by 20%, thanks in part to a $100 million tariff refund.

Disney CEO Josh D'Amaro highlighted the strategy behind investing in franchises like 'Toy Story' to reach audiences beyond the box office. He emphasized that the company will continue to evolve Disney+, adding features such as games, merchandise, and other experiences. D'Amaro also mentioned considering a free streaming product to attract price-sensitive consumers.

Separately, Disney announced a deal with TikTok, allowing creators to use Disney characters and scenes in their short-form videos. The agreement marks the first of its kind between a traditional media company and TikTok.