Part 5/8:
A key takeaway from this revelation is the pressing need for transparency regarding financial reporting within the film industry, particularly for publicly traded companies like Disney. Investors deserve clarity to evaluate the performance and accountability of their investments. Questions arise about the management's decisions surrounding massive budgets and the profitability of films that ultimately flop at the box office.
As the discussion progressed, it became evident that Disney's lack of transparency could be seen as a disservice to its shareholders. Not knowing how much it costs to produce their flagship films makes it exceedingly difficult for investors to judge the competence of studio heads and, by extension, the overall health of the company.