A recent report claims that The Walt Disney Company could fix its problem of revenue growth if it stopped ignoring one avenue of exploration.
The Walt Disney Company has had a difficult few years when it comes to revenue. The company was briefly in such a slump that the board of directors unceremoniously ousted former Disney CEO Bob Chapek and brought back current Disney CEO Bob Iger to take the helm and lift Disney out of despair.
Over the last year, Mr. Iger has spent a lot of time cleaning up at the company, ultimately resulting in cutting costs to the tune of $7.5 billion. Part of this also included putting a stop to the Bob Chapek-era division that focused on Disney’s presence in the Metaverse.
Report Asserts Disney Could Fix Revenue Growth by Investing in Metaverse
While it seemed to many that Disney had given up on its growth in the Metaverse, its recently announced deal shows that perhaps Disney is not as unaware of this sector as was once thought.
On February 7, Disney announced it was partnering with Epic Games to create an “entertainment universe.” Disney is investing $1.5 billion into Epic Games, the maker of Fortnite, to help grow this. Along with games, this new project will allow gamers to engage more with characters and content.
Per a recent report from Yahoo Finance, this sounds a lot like “metaverse part two.”
In 2021, Facebook changed its name to Meta Platforms and spent billions on its Reality Labs division. “Metaverse” became a notable buzzword at the time, and everyone jumped in to get their piece of the pie.
Since then, the connotations around the Metaverse have changed, and given Disney’s propensity to distance itself from negativity, the company has shifted away from working on it or even mentioning it.
Of course, this type of investment always comes with risks, but clearly, Disney believes this partnership could be incredibly profitable for them.
Do you think Disney should focus more on investing in the Metaverse or Metaverse-type projects? Let Disney Dining know in the comments!