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Reopening Of Disney Springs A 'Drop In The Bucket' For The Mouse, Analyst Says

Walt Disney Co (NYSE: DIS) reopened its Disney Springs complex in Orlando and the revenue contribution will represent a "drop in the bucket" for the company, Macquarie analy

Benzinga · 05/21/2020 17:54

Walt Disney Co (NYSE: DIS) reopened its Disney Springs complex in Orlando and the revenue contribution will represent a "drop in the bucket" for the company, Macquarie analyst Tim Nollen said on CNBC's "Squawk Box Asia."

What Happened To Disney Springs

Disney merely resumed operations at its shopping and dining complex in Florida on Wednesday in a very limited capacity and to a small number of people, Nollen said.

This could be viewed as a "dry run" for an eventual reopening of the entire theme park as Disney workers are figuring out how best to enforce health and safety rules, the analyst said. 

In the meantime, there are zero indications of when the park will fully reopen, and this represents the vast majority of revenue generation, he said. 

Why It's Important For Investors

Even when the park fully reopens, demand could certainly be hampered "for some time" as people remain nervous and concerned, Nollen said. It could take "a year or two" until the public becomes comfortable once again with any form of normalcy, the analyst said. 

What's Going On With Streaming? 

Disney has certainly seen a large growth in demand for its new video streaming service Disney+, but its library of original content remains "quite small," Nollen said.

What separates Disney+ from other rival streaming services is its intellectual property portfolio, which will be exclusive to Disney and can't be found anywhere else, he said. 

Disney shares were down 2.33% at $117.14 at the time of publication Thursday. 

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