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Analysis: could Disney spin off ESPN and ABC?

Don CT said:
What is Disney most known for. Mickey Mouse and Disney World. They don’t need ESPN. In fact I think both would be better apart. They should make the movie studio a separate division. Sell off the network side and focus on what they are good at.
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The things "they're good at" are not cost efficient. Running movie studios cost a lot of money. You pay for people & facilities whether the movies make money or not. Most of the time they don't. So you need a source of cash, and you need an outlet for that content you're creating. Movie theaters are not the future of content distribution. Disney+ was a flop. They need to combine it with other content to make it a must-have.

Having a TV network and cable channels are distribution channels. The big expense are the O&O stations. For now, they guarantee outlets for the TV networks. But long term, they're expendable.
 
TheBigA said:
The things "they're good at" are not cost efficient. Running movie studios cost a lot of money. You pay for people & facilities whether the movies make money or not. Most of the time they don't. So you need a source of cash, and you need an outlet for that content you're creating. Movie theaters are not the future of content distribution. Disney+ was a flop. They need to combine it with other content to make it a must-have.

Having a TV network and cable channels are distribution channels. The big expense are the O&O stations. For now, they guarantee outlets for the TV networks. But long term, they're expendable.
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ESPN is not the cash cow it once was. How much does ABC pull in now. These networks are burning more money on sports rights then they make on cable fees.
 
Don CT said:
What is Disney most known for. Mickey Mouse and Disney World.
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How is Mickey Mouse relevant today? Stuff that appealed to kids back when many of us were kids (or even young parents) is practically meaningless today. Brewing controversy up my way is the possibility of a casino being built in the empty remnants of a car dealership in Lebanon, NH. Boomer and Gen X parents are complaining that a bowling alley "for the kids" would be a better use, not knowing that kids haven't been spending spare hours in bowling alleys (or playing pinball, which often went along with bowling) for better than a full generation, maybe two.
 
TheBigA said:
The future is streaming. Making money in streaming means access to content. ESPN has access to content.

BTW cable fees for ESPN were $8 billion, and the networks made over $2 billion profit. So you're wrong about that.
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And sports is still the best way for advertisers to get a marketable male audience to sell to. Between OTA ABC, cable ESPN and streaming ESPN+, Disney has a superb collection of sports properties.
 
Don CT said:
As opposed to being saddled in debt losing money?

Disney is a bloated company at this point.
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Hey, I've got an idea. Rather than making an uninformed blanket statement, why not look up their Q4 earnings report? Here, let me help you: The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2022 - The Walt Disney Company

Too many words for you? Here are a couple top-line statements from the report:

"Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $5.5 billion in the prior-year quarter. Segment operating income increased $0.9 billion to $1.5 billion compared to $0.6 billion in the prior-year quarter. Higher operating results for the quarter reflected increases at our domestic and international parks and experiences businesses and, to a lesser extent, our merchandise licensing business."

"Other Income (Expense), net"

"In the current quarter, the Company recorded a $63 million non-cash gain to adjust its investment in DraftKings, Inc. (DraftKings) to fair value (DraftKings gain (loss)). In the prior-year quarter, the Company recorded a $13 million DraftKings loss."
 
Don CT said:
What is Disney most known for. Mickey Mouse and Disney World. They don’t need ESPN. In fact I think both would be better apart. They should make the movie studio a separate division. Sell off the network side and focus on what they are good at.

Had the acquisition of the Fox properties helped or hurt the company.
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They actually do need ESPN in some fashion, for the near term at the moment. Sports continue to be one of the platforms that delivers a large audience of demographically desirable viewers. That’s not to say run things like it’s still 1998, but that content is more valuable at this time than…Mickey Mouse.
Mickey? That’s the solution? That’s the long-term path?

Mickey and pals do show the importance of a strong content library, and a wide variety of it. “Vintage” Disney isn’t enough. By a li g shot.

It isn’t disrespectful to what Walt accomplished in his career to point out that blueprint holds no relevance in today’s world.
 
Don CT said:
As opposed to being saddled in debt losing money?
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Disney is neither.
Don CT said:
Disney is a bloated company at this point.
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Hardly. It is a leisure time and entertainment company. Anything from resort hotels and cruise ships to sports and movies fit in their scope, and having a broader range of offerings softens cyclical downtrends in individual areas.
 
Don CT said:
Well Florida will be sinking soon enough, maybe he can just wait it out and get a tax write off.
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I suppose you are dealing in hyperbole, but Florida is not sinking. Yes, water levels are rising by a few inches, affecting, mostly, offshore islands, but nothing is "sinking".
 
DavidEduardo said:
I suppose you are dealing in hyperbole, but Florida is not sinking. Yes, water levels are rising by a few inches, affecting, mostly, offshore islands, but nothing is "sinking".
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It sounds a great deal like my father in law who insists time and again all coastal states will be underwater soon, soon being 5 years.
 
Kelly A said:
Is this right after he's telling the neighborhood kids to get off his lawn?
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And he has a radio with CONELRAD markings on the dial, "just in case".
 
If everything is great at Disney why did they just can their CEO?
 
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TheBigA said:
The things "they're good at" are not cost efficient. Running movie studios cost a lot of money. You pay for people & facilities whether the movies make money or not. Most of the time they don't. So you need a source of cash, and you need an outlet for that content you're creating. Movie theaters are not the future of content distribution. Disney+ was a flop. They need to combine it with other content to make it a must-have.

Having a TV network and cable channels are distribution channels. The big expense are the O&O stations. For now, they guarantee outlets for the TV networks. But long term, they're expendable.
Click to expand...
O&O stations who would get them? But at the same time the O&O's like KABC, WABC, KGO, WLS , KTRK, KFSN WTVD and WPVI have to be made as app only outlets. They could merge them with the ABC News app and that's about it for the owned affiliates.

There is one remaining radio station that Disney has and it's KRDC Los Angeles that station currently has an LMA with Good Karma Owned/ESPN Radio affiliate in the area. When Good Karma gets full ownership KRDC is yet to be seen here.

I knew Disney for sometime has been promoting Hulu as part of the Disney apps bundle for the must watch shows on their other outlet and its tied to shows from ABC Primetime, ABC News Specials and FX.
 
Don CT said:
If everything is great at Disney why did they just can their CEO?
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That’s not the argument anyone made, and not terribly good attested deflection. Problems exist, and will always exist, because humans are flawed. But “we want to make a change at the top” does not mean “let’s just go back to Mickey and friends.“ A does not equal B.
 
AbrahamJSimpson said:
That’s not the argument anyone made, and not terribly good attested deflection. Problems exist, and will always exist, because humans are flawed. But “we want to make a change at the top” does not mean “let’s just go back to Mickey and friends.“ A does not equal B.st
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I keep hearing how Disney+ is a flop. They are not going to just kill it like CNN+. What other changes do they expect to happen unless they sell off pieces. Either the board is happy where the company sits now or they are not. You don't just fire a CEO unless you want an overhaul.
 
Don CT said:
I keep hearing how Disney+ is a flop.
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Anyone who says that is wrong. Disney+ is a multi-billion dollar business, and that's not even considering ESPN+ and Hulu.

It is possible to run a multi-billion dollar business badly, but consumers have embraced Disney+ so far.
 
PTBoardOp94 said:
Anyone who says that is wrong. Disney+ is a multi-billion dollar business, and that's not even considering ESPN+ and Hulu.

It is possible to run a multi-billion dollar business badly, but consumers have embraced Disney+ so far.
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They need to decide what Hulu is. Why have both Disney+ and Hulu. Just combine everything.
 
Don CT said:
I keep hearing how Disney+ is a flop. They are not going to just kill it like CNN+. What other changes do they expect to happen unless they sell off pieces. Either the board is happy where the company sits now or they are not. You don't just fire a CEO unless you want an overhaul.
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Perhaps you hear from people who don’t know what they’re talking about? Again, changes in direction does not mean living in 1970.
 
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