Disney Sends Movie Theaters Scurrying for Cover in This Major Market
The coronavirus pandemic has dealt a severe blow to movie theaters around the world. Social distancing measures put in place to contain the spread of COVID-19 have kept theaters closed for nearly four months now, leaving multiplexes without a source of revenue as they struggle to pay rents and salaries.
But the loss of theaters has turned out to be a tailwind for video streaming platforms that have swooped in to fill the entertainment void caused by the closures. There has been a sharp spike in video streaming in recent months as consumers have turned to online platforms to keep themselves entertained from the confines of their homes.
This may have put traditional theaters in a tough spot as more and more production houses are moving to over-the-top (OTT) media platforms that release movies via the internet. Disney (NYSE: DIS) is one such company that's benefiting from this trend in India -- a country with one of the largest movie industries in the world.
Source Fool.com
