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Disney earnings: Maybe there isn't a tech-entertainment connection

World of Color

Susan Valot/KPCC

"World of Color," a water show that opened last year, is credited with drawing more people to Disney California Adventure.

Walt Disney Co. reported first-quarter earnings yesterday, and they were fairly good: net income was up 12 percent.

But the growth came largely from ESPN and theme parks. If you study the earnings statement, you can spot something alarming in two critical parts of the business of the Mouse: movies and video games.

This is from Bloomberg:

Seven Disney films in U.S. theaters in the quarter collected ticket sales of $239 million, a 33 percent drop from $357.6 million generated by nine movies a year ago, according to Box Office Mojo, an industry researcher.

The studio is in talks with Coinstar Inc.’s Redbox and other services to impose a 28-day delay on rentals of new DVDs, [CEO Bob] Iger said on the call. The delay is being sought because of the industrywide drop in DVD and Blu-ray sales, he said.

The consumer products unit reported profit little changed at $313 million on a 3 percent higher sales of $948 million.

Disney’s interactive division registered a loss of $28 million. Sales tumbled 20 percent to $279 million. The unit is cutting costs and taking steps to raise revenue with a goal of becoming profitable in the next fiscal year, Iger said. It hasn’t shown a profit since Disney began breaking out the results in the final three months of 2008.

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