Citi is not at all enthusiastic about the media/entertainment industry. In a report covering the sector, Citi issued dismal revenue and profit forecasts. Disney is especially screwed. Some of the highlights:
Expect major U.S. studios to generate ’08 revenues of $37 billion, down 3% versus ’07. ’08 will likely mark 2nd consecutive year of top-line compression for U.S. studios.
Estimate $21.4 billion in global DVD sales in 2008, down 8% versus 2007. DVD sales may have peaked in 2006.
[Disney’s] fiscal ’08 studio revenues of $6.4 billion, down from $7.5 billion in 2007. 2007 benefited from Pirates and Ratatouille. ’08 slate looks soft by comparison.
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