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Sun Jan 3, 2016, 01:25 PM

Disney has a money problem that even ‘Star Wars’ can’t fix

Source: The Washington Post

Since "Star Wars: The Force Awakens" first blasted into international theaters Dec. 15, Disney's blockbuster has broken virtually every box-office record in history, becoming on Sunday the fastest film in history to make $1 billion worldwide.

But investors haven't exactly rewarded the media titan: Disney's stock has tumbled more than 6 percent since that premiere, and even analysts impressed with perhaps the biggest film franchise on earth say it's not enough to shield the Big Mouse from its greatest challenge.

Disney's real threat, analysts say, is in cable TV: particularly, in the heavy long-term costs it pays to air sports on its struggling juggernaut ESPN. As more viewers opt to pay less for cable — or cut the cord altogether — Disney's heaping of stunningly pricey sports-TV contracts looks riskier every year.

"Even the Force cannot protect ESPN," BTIG Research analyst Rich Greenfield recently wrote in a note downgrading the stock to "sell." The sports channel long "viewed as the crown jewel of the Disney empire ... now appears poised to become Disney’s most troubled business as consumer behavior shifts rapidly."

FULL STORY: https://www.washingtonpost.com/news/the-switch/wp/2015/12/28/disney-has-a-money-problem-that-even-star-wars-cant-fix/

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Reply Disney has a money problem that even ‘Star Wars’ can’t fix (Original post)
Auggie Jan 2016 OP
elleng Jan 2016 #1
unc70 Jan 2016 #2

Response to Auggie (Original post)

Sun Jan 3, 2016, 01:56 PM

1. HA! The 'law' of unintended consequences!

Wouldn't it be great if all the screwy 'juggernaut' mergers suffered similarly!

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Response to Auggie (Original post)

Sun Jan 3, 2016, 02:46 PM

2. Big threat to college athletics

Much of the funding for college athletics comes from ESPN, et al. The 8% decline in ESPN cable subscribers will soon ripple through the NCAA and its members.

I talked about this with Jim Delany at a reunion some years ago. He dismissed my concerns. Wonder if he is still unconcerned?

(Jim is commissioner of the Big Ten conference.)

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