Tag Archives: Walt Disney

Disney said to Netflix that they are planning to launch a competing streaming site service next year

Im a big fan of Walt Disney. Thats why I not only look at their films, but also their stocks. Walt Disney is not alone in the film market, and one of their competitors is Netflix. But for how long? Last Fall Disney said they wanted to pull its own films from Netflix.

Disney said they are planning to launch a competing streaming site service next year. It will be a family friendly streaming site and a site for adults. We know that Netflix is producing its own films, but we also know how Disney is doing it. It is a production powerhouse. In other words; a big competitor in the future.

(Tchaikovsky`s music from the ballet “The Nutcracker” is one of my favorites. This fantasy film directed by Lasse Hallstrom is scheduled to be released by Walt Disney Pictures on November 2, 2018)

Walt Disneys market cap is 150,46 billion, while Netflix market cap is 138,10 billion. A big difference, but unfair to compare, because Netflix is a streaming company while Disney is so much more than that.

Walt Disney Company is an entertainment company. The company operates in four business segments, which is Media Networks, Parks and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

The media networks segments includes cable and broadcast television networks, television production and distribution operations, domestic television stations, and radio networks and stations.

There is no doubt that the real big Champion in the streaming market is Netflix, but they will get a serious competitor in the future. The Fox deal will make Disney even bigger on top of its already great pool of media properties. A majority stake in Hulu will also help.

Disney will take control of Fox`s movie studios, TV studios, FX Network and National Geographic Channel. All this will help Disney to build a new streaming giant.

Disney agreed to buy the bulk of Fox for $52 billion in December of 2017. Included in the package deal was a 30 percent stake in online streaming service, Hulu, of which Disney already owned 30 percent.

Now with a majority stake in the company, Disney has the option to buy out the rest of the Hulu stock from Comcast and Time Warner or engage with all the players involved. There is no doubt that they can be a great production powerhouse.

Disney are jumping right into it with Hulu. On top of that they can start to build their own streaming site for children in addition to ESPN Plus, which is a subscription service for sports fans, that will launch this spring for $4,99 per month.

“I think the way to look at the revenue opportunities, as particularly as it relates to production, is to consider the fact that what we`re buying here is significant production capabilities and, with that, the talent to produce on our behalf,”¬†Iger said to investors earlier this year.

Walt Disney Company is expected to report earning on 8 May 2018 after market close. The report will be for the fiscal Quarter ending March 2018. Earnings forecast for the quarter is $1,68, and reported earning for the same quarter last year was $1,5. Any earnings surprise?


Leave a comment

Filed under Stocks

Most of Disney`s revenue comes from Media Networks with $5,9 billions in revenue but it is declining

I have always been a very big fan of Walt Disney. Not only because of the equities but all the work they have done. All the films and all the cartoon heroes. That`s what I call real big entertainment in first class.

Walt Disney is expected to report earnings on Tuesday 8 August and ESPN will be a key in the report this time. In May, we saw bad news from the ESPN segment and the shares has declined since the last report.



$1,1 billions of the revenues comes from Consumer products & Interactive media. $2 billions comes from Studio Entertainment and $4,3 billions comes from Parks and Resorts while most of Disney`s revenue comes from Media Networks with $5,9 billions in revenue.

But, sadly for Disney, the revenue from Media Networks is declining. The cable TV and broadcast networks have been hit hard and millions of subscribers have jumped over to on demand TV and live streaming.

Many people are cutting cords and spend more time and money on streaming services such as Netflix and Amazon Prime Video. According to Nielsen, ESPN has lost more than 13 million subscribers in recent years.

They had about 100 million subscribers in 2011 but today it is less than 87 million.

ESPN are facing sharp competition from Amazon Prime. Their flagship sports news program SportsCenter has dropped dramatically over the last decade.

Amazon outbid Sky Sports for the UK telecast right of all ATP events and is paying about £10 million per year for this deal. Amazon is also paying about $50 million for rights to stream 10 Thursday night games of National Football League.

This is why ESPN has been a worry for investors for a while. Advertising was also soft in Q1 (Disney`s F2Q). All this is why analysts are lowering their price target for the Disney stock. But Disney are taking steps to erase investors fears.

They have partnered with OTT players. They have also partnered with AT&T`s OTT service DirecTVNow. In addition; many Disney channels and ESPN are a huge part of the recently launched YouTube Live TV service and they acquired a 33% stake in the sports streaming site BAMTech.

ESPN and Turner Sports signed a new deal with NBA and they pay about $2,6 billion per year for that deal which is 180% more than last year. The competition in the market is pushing the prices up for many of the sporting events and this is squeezing the cable network segment.

Disney hiked ESPN subscriber charges including laying off hundreds of staff to control costs to meet the challenges. Rising costs and declining subscribers has decreased ESPNs income to Disneys profit. It`s nearly half of what it was only five years ago.

While ESPN is a big worry for investors, other segments are doing it very good.

Disney Inc will report earnings on Tuesday 8 August after market close. The report will be for the fiscal Quarter ending June 2017. The consensus earnings for the quarter is $1,53 while the earnings for the same period last year was $1,62.


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks

If you can dream it, you can do it




Leave a comment

Filed under Uncategorized