Reuters:
Walt Disney Co (DIS.N) reported a smaller-then-expected rise in quarterly revenue and lower profit from its cable TV operation on Tuesday as it grapples with higher costs at its cash-cow sports network ESPN.
The world’s biggest entertainment company’s shares fell 3.2 percent after the bell.
Disney’s quarterly profit beat analysts’ estimates as the company benefited from the success of its latest fairytale adaptation “Beauty and the Beast” and growth in its theme park business.
However, operating income for the cable division fell nearly 3 percent to $1.79 billion.
The company blamed the decline to higher programming costs at ESPN due to the shift in timing of College Football Playoff bowl games and contractual rate increases for NBA programming.
Disney has been stepping up efforts to stem subscriber losses at ESPN as younger viewers move away from traditional pay television packages, a trend known as “cord-cutting”.
Recent earnings reports have raised concern that the pace of cord-cutting is picking up. MoffettNathanson analysts calculated that pay TV distributors lost 762,000 subscribers from January through March, the worst first-quarter result on record. more
That’s what happens when you act like you’re f*ckin’ Goofy.
“…cash-cow sports network ESPN…”
“Cash cow” must mean something else in Britain. I believe the apt metaphor would be “money pit”.
Goofy has his hands in too many pots not associated with Disney properties or products.
Since it seems that ESPN was the culprit that’s a huge drop in share value compared to what ESPN lost. If that’s the markets reaction I’ll bet Disney is looking for a buyer however that sort of pay regardless model might be dying and they may not find a buyer. Watch them testing the waters of spinning off as a public company.
The mouse needs to dump ’em.
The actions they are taking to keep the millennials from turning them off is actually causing their older customers that actually pay the bills to turn off their liberal jerk fest of a network.
When “Sleeping Beauty” is fired and replaced by “The Beast.”
R.I.P., Walt.
Gay “Pride” Days at Disney parks should be added to their downward spiral profit margin equation.
Disney used to represent wholesome family values …. now they promote nothing but d’Rat filth & garbage to hasten us to the gulags
Honestly, we all can be Goofy sometimes.
But to stubbornly stick with it when it’s obviously wrongheaded is downright giant DUMBO.
When the tide totally turns, these creeps will have also blown their ability to gouge the chillrun for those good PIXAR films.
Oh yeah, that espeeein channel, don’t have it.