Walt Disney’s earnings and revenue fell short of expectations in the third quarter. Disney CEO Bob Iger blamed exogenous causes, including the performance of 21st Century Fox, which his company acquired this year. He said Fox’s success was “well below … what we thought it would be when we did the acquisition.” Disney also blamed Hulu and higher investments in streaming services.
Recently, Disney announced record earnings of $7.67 billion in 2019, with five months remaining in the year. Along the way, it became the first Hollywood studio to reap more than $5 billion internationally.
A large part of its 2019 success came from animated films such as The Lion King and Toy Story 4, which earned about $1 billion each. The Wave Principle of Human Social Behavior said Disney’s animated films have a history of succeeding during times of positively trending social mood. Furthermore, Disney’s Avengers: Endgame is now the highest-grossing film of all time, at $2.8 billion.
But the success of movie studios is regulated by an endogenous cause: social mood. Disney would be wise to keep its finger on the pulse of society and not extrapolate its current game plan into the future. As socionomists have noted on multiple occasions, shifts in social mood affect viewer preferences for entertainment.
For an example, read “Of Mice and Mood, Part Two of a Study on Animation and Socionomics.”
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.