Disney notes cost cuts

Wed Feb 10 2010 13:02

Overall costs and expenses at Disney have been lowered, it has been revealed.

Disney has taken efforts to lower its production costs.

Unveiling its first-quarter income report, the firm notes that in the three months leading up to January 2nd, home entertainment revenue rose.

Such growth was partially attributed to lower marketing expenses and distribution costs, something Disney claims was "driven by cost reduction initiatives".

And those companies looking to see how production costing software can help them may be interested to hear Disney was able to achieve lower production cost amortisation and participation expense, something that was said to be "reflected [in] the strong performance" of recent released such as The Proposal and Up.

However, a rise in production costs for ESPN - the network of sports channels owned by Disney - was noted.

Over the quarter, total costs and expenses stood at $8,325 million, compared to the $8,382 million noted for the three-month period ending December 27th.

Speaking in December, president and chief executive Robert A Iger stated that despite the difficulties caused by the financial downturn, Disney had made efforts to "efficiently" manage costs.