Agencies

Investors are almost through the first coronavirus-wrecked earnings season, and the message from the leading entertainment companies is that things will get worse before they get better. If there’s a silver lining, it may be that the pandemic is also providing a clearer picture of the future of entertainment consumption, and it substantiates the industry’s costly plans to go all-in on streaming platforms.

The most telling number that came out of earnings in recent weeks was 91%. That’s how much net income plunged at Walt Disney Co. one of the most time-tested, resilient companies in the world.

Regional lockdowns have taken aim at all of Disney’s core businesses, most notably its theme parks around the world, which have been closed to visitors for weeks. But the TV and film operations at Disney’s rivals are also hurting.

In fact, Netflix Inc. is the only media giant that doesn’t have revenue tied to advertising, live sports or people leaving their houses, and it’s the only industry stock that’s been left unscathed.

Explosive demand for TV content led almost 16 million people to sign up for Netflix — more than double what the company predicted before the Covid-19 outbreak.

The extended time at home also has been a chance for consumers to take new apps out for a spin, including Disney+, Apple TV+, Quibi and Comcast Corp.’s Peacock. Disney+ has added 28 million subscribers since December.

Meanwhile, as the recession causes consumers to tighten their budgets, pricey cable-TV bills will be on the chopping block. Already last quarter, the big four pay-TV providers saw an exodus of nearly 2 million customers, with AT&T Inc.’s DirecTV accounting for almost half of those cancellations.