Do Fewer Blockbusters Mean Big Bucks for Disney Investors?

Do Fewer Blockbusters Mean Big Bucks for Disney Investors?

In the entertainment business, you have to spend money to make money. But as Walt Disney shareholders have seen several times in the last two years, the second part of that saying can be tricky at times. Noteworthy flops such as John Carter last year and The Lone Ranger this summer have investors reeling from these multimillion-dollar sinkholes.

Yet Disney also offered good news recently for investors weary of these big-ticket busts. Comments from Disney CFO Jay Rasulo indicate the House of Mouse plans to gamble less on high-risk, high-reward features in the coming years. While that might remove some home run potential, this should be a positive for Disney shareholders, as tech and telecom analyst Andrew Tonner argues in the video below.

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Fool contributor Andrew Tonner has no position in any stocks mentioned. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool recommends Walt Disney. The Motley Fool owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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