Politics 28000 Layoffs coming to Disney's domestic theme parks - statement from Josh D'Amaro

[UNCgolf]

I have a family member that was a marketing exec for Disney for over 10 years. ESPN hasn’t been a money printing machine in a VERY long time. It is one of the LEAST profitable parts of the company.

I don't believe that's true. Disney's public reporting (as well as analyst breakdowns) suggests that media networks are the biggest part of their business, and that ESPN is the biggest revenue producer among those media networks -- I've even seen multiple stock analysts suggest in the past year that ESPN alone makes more money for Disney than the entire film division.

 

[Joe]

Yes. No strikes allowed, at least for STCU cast members.

Correct. Also a no strike clause is only valid during the life of the contract. Once the contract expires, so does the no strike clause.

 

[MagicHappens1971]

I don't believe that's true. Disney's public reporting (as well as analyst breakdowns) suggests that media networks are the biggest part of their business, and that ESPN is the biggest revenue producer among those media networks -- I've even seen multiple stock analysts suggest in the past year that ESPN alone makes more money for Disney than the entire film division.

I’ve never done much research, so i won’t argue. I’m just going off of what my family member told me, they worked for the company for a very long time in a pretty high up role, so I just took their word for it.

 

[UNCgolf]

I’ve never done much research, so i won’t argue. I’m just going off of what my family member told me, they worked for the company for a very long time in a pretty high up role, so I just took their word for it.

It's impossible to say for sure, of course, because Disney doesn't separate out the ESPN family in their public filings. You have to sort of dig around and extrapolate, but it appears that ESPN alone brings in over $10 billion yearly in revenue. The media networks division as a whole had something like $7.5 billion in operating income, so it seems likely that ESPN was a major driver in that number.

 

[JoeCamel]

It's impossible to say for sure, of course, because Disney doesn't separate out the ESPN family in their public filings. You have to sort of dig around and extrapolate, but it appears that ESPN alone brings in over $10 billion yearly in revenue. The media networks division as a whole had something like $7.5 billion in operating income, so it seems likely that ESPN was a major driver in that number.

From May 1 but I think the assumptions in the analysis are sound today

Analysis: Sports vanishing to cost at least $12B

The meltdown is historic, touching every sector of the $100 billion U.S. sports industry.

www.espn.com

 

[Lilofan]

Correct. Also a no strike clause is only valid during the life of the contract. Once the contract expires, so does the no strike clause.

Companies are not stupid. They keep "extending" the contract.

 

[Joe]

Companies are not stupid. They keep "extending" the contract.

It takes two parties to extend a contract.

 

[JoeCamel]

Companies are not stupid. They keep "extending" the contract.

Florida is a right to work state, only thing a strike does ins show up on the evening news. It does not stop operation of the unit. No contract needed

 

[UNCgolf]

From May 1 but I think the assumptions in the analysis are sound today

Analysis: Sports vanishing to cost at least $12B

The meltdown is historic, touching every sector of the $100 billion U.S. sports industry.

www.espn.com

Yep. ESPN is huge business for Disney.

Luckily for them, I'm not sure the pandemic would affect them too much as far as ESPN goes because they were still getting their carriage fees from cable companies (as long as a bunch of people didn't cancel cable) -- it would have had an effect, obviously, but probably nowhere near as big a hit as something like the movie division. And now that college football and the NFL are happening they have tons of content (at least on the weekends).

 

[JoeCamel]

Yep. ESPN is huge business for Disney.

Luckily for them, I'm not sure the pandemic would affect them too much as far as ESPN goes because they were still getting their carriage fees from cable companies (as long as a bunch of people didn't cancel cable) -- it would have had an effect, obviously, but probably nowhere near as big a hit as something like the movie division. And now that college football and the NFL are happening they have tons of content (at least on the weekends).

I keep looking at the content contracts. Their nut is huge.

 

[flynnibus]

Yep. ESPN is huge business for Disney.

Luckily for them, I'm not sure the pandemic would affect them too much as far as ESPN goes because they were still getting their carriage fees from cable companies (as long as a bunch of people didn't cancel cable) -- it would have had an effect, obviously, but probably nowhere near as big a hit as something like the movie division. And now that college football and the NFL are happening they have tons of content (at least on the weekends).

No sports on TV... no lucrative ad spots to sell. Ads is where the payoff is... the carriage fees are the baseline. Right now the situation is hard to see because they deferred all kinds of money and fees to diffuse the immediate impact.

 

[UNCgolf]

No sports on TV... no lucrative ad spots to sell. Ads is where the payoff is... the carriage fees are the baseline. Right now the situation is hard to see because they deferred all kinds of money and fees to diffuse the immediate impact.

It's estimated that they make roughly $8.5 billion just from carriage fees for the ESPN family of networks. My understanding is the carriage/affiliate fees dwarf advertising revenue, although it's impossible to know for sure since Disney doesn't report those numbers separately.

I doubt they were making much money from ESPN during the dead period because they also have all the overhead costs of running the business, but they're probably humming along again now with football up and running.

From what I've read, the carriage fees pay for basically all of the business overhead and advertising revenue is essentially all profit.

 

[Lilofan]

Florida is a right to work state, only thing a strike does ins show up on the evening news. It does not stop operation of the unit. No contract needed

If writing on contract is strike and you're fired then that's a different story.

 

[MisterPenguin]

I have a family member that was a marketing exec for Disney for over 10 years. ESPN hasn’t been a money printing machine in a VERY long time. It is one of the LEAST profitable parts of the company.

Send your family member this link:

How Disney's ESPN Makes Money From Sports Broadcasting | The Motley Fool

Sports broadcasting is a lucrative business, and ESPN is one of Disney's most valuable assets.

www.fool.com

 

[JoeCamel]

Send your family member this link:

How Disney's ESPN Makes Money From Sports Broadcasting | The Motley Fool

Sports broadcasting is a lucrative business, and ESPN is one of Disney's most valuable assets.

www.fool.com

I agree with that article but it is using 2017 numbers and there are 10% less subscribers now so those carriage fees are way down. Any business that is shrinking year over year is not in good shape. In any case it is still profitable and to say it makes the most money for the company at this time is true but a billion or two profit will not sustain the rest of the company for very long.

 

[Ldno]

I agree with that article but it is using 2017 numbers and there are 10% less subscribers now so those carriage fees are way down. Any business that is shrinking year over year is not in good shape. In any case it is still profitable and to say it makes the most money for the company at this time is true but a billion or two profit will not sustain the rest of the company for very long.

I agree, everyone wants cable to die, but that was the bulk of their business, given the notion that at the end of the day cable had contracts, therefore you could expect them to be locked in for a year or two depending on the brand. ESPN + can be a year or monthly but people can cancel at any time, especially when other sport streaming brands are popping up for way cheaper.

 

[DG32]

so tone deaf it's almost funny

I'm actually a professional musician soooo inaccurate not only figuratively but also literally.

Anyway, where's the lie? People actually demanded not to work and now are no longer able to work. It's a travesty but for real what did they expect?

 

[DG32]

Wow.
1) I don't remember Cast Members picketing and a google search shows none
2) I would think the Rose Garden Massacre show show you the dangers of large number of people gathering
3) Your attempt to frame your augment as "they shouldn't have done what they done, it's their own moochin', welfare lovin' fault" is pathetic and mean spirited

Your glib reduction of my point is pathetic and mean-spirited. I have nothing but compassion for the people (including many family and close personal friends) who have lost their jobs after almost a year of not being able to work.

And here, I'll do your research for you: https://www.latimes.com/business/st...opening-details-but-some-workers-want-a-delay

 

[castlecake2.0]

DCL shipboard crew start receiving call backs today

 

[Riverrafter21]

I wonder if they really get sailing in 2020? Surely they aren't calling people back to swab the deck for three months