Disney’s Dividend Symbolism: The Information’s Tech Briefing

Greetings!

We got more evidence today that the pandemic is likely to accelerate the shift in economic power from entertainment to tech. Disney, the mightiest of the Hollywood giants, suspended its half-yearly dividend, symbolizing just how much entertainment has been devastated by the current crisis. Last week, when big tech companies reported their March quarter earnings, the impact of the crisis appeared muted. Apple even raised its dividend! 

From a brand perspective, Disney’s name is on a par with that of Apple. And in many ways, Disney has been the most forward-thinking of the big entertainment companies, with its focus on streaming. But it also happens to be in industries that are most badly affected by widespread stay-at-home orders: theme parks, cruises, sports and film.