Disney Misses, Without a Hit

In this economy, it's tough to come off a strong year. Last year, Walt Disney (DIS) was firing on all cylinders, with strong DVD sales for its Disney Channel blockbuster, High School Musical 2, and the hit movie Pirates of the Caribbean: At World's End. Without any large breakout films now, though, the Burbank (Calif.) company announced on Feb. 2 a steep 32% drop in first-quarter net income, as customers avoided its massive theme parks and ad sales tanked at both its ABC network and ESPN cable channel.

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