Well, in the last annual report the Company says that the Studio Entertainment Group (which includes theatrical, home video, live stage and Miramax) earned only $273 million dollars on revenues of $6.7 billion dollars. I'd hardly call a 4% return a modest string of successes Disney could have made more profit it had made home loans instead of movies*. And also remember that the first day of 'Monsters, Inc.' DVD sales were close to $100 million alone, you have to wonder why profits were so low.
And there's another interesting little bit. The costs of mega movies like 'Pearl Harbor', 'Bad Company', 'Treasure Planet', 'Gangs of New York' aren't even fully recognized in the year, the rest is amortized over the hoped for life of the movie. What you're seeing is all of the revenue for 'Gangs' and only part of the movie's cost. This, of course, makes this year's profits look higher.
'Gangs' will simply never make a profit. It cost too much, too much to market, too much to buy all those award nominations, too much to pay off all those bruised egos and took in far too little at the box office (which directly translates into home video performance). The announced production costs were $120 million, the Hollywood buzz says it's really slightly north of $150 million. Marketing adds another $50 - $80 million to that as well. Then there are all those other costs...
The lesson Disney needs to draw from it recent movie performance: well made modest movies are winners: 'The Rookie', 'Signs', 'Lilo and Stitch'. Big time executive ego blockbusters: 'Bad Company', 'Reign of Fire', 'Gangs of New York', 'Treasure Planet' -- are losers.
* Disney made 18% from the parks, 16% from stores & product licenses, and even managed 10% from struggling ABC and cable. In fact, Consumer Products had just one third of the revenue that Studio Entertainment had - yet CP had a higher profit in real dollars.