Disney's Q3 FY15 Earnings Results

[Frankie The Beer]

DIS lost 11% of its value and already its starting to creep back up. Pity to those who foolishly dumped their shares before the new Star Wars film releases. As for ESPN, it will still remain profitable as long as Disney has the NFL. When the NFL gets smart and decides to program their own content including games, then all major sport providers are in trouble.

People are cutting the cable cord, that's the real issue, and ESPN's sub losses are reflected in people, finally, getting smart. Its not coincidence a week before earnings Iger was talking about ESPN and other Disney owned channels being offered direct, the problem is Disney from what I can gather don't have a solution in place yet to do it themselves. I read constant speculation about Disney and Apple teaming up for some kind of all in one cable solution but until I see massive infrastructure developments, its just rumors.

DIS is still a bull. For now.

 

[Bairstow]

DIS lost 11% of its value and already its starting to creep back up. Pity to those who foolishly dumped their shares before the new Star Wars film releases. As for ESPN, it will still remain profitable as long as Disney has the NFL. When the NFL gets smart and decides to program their own content including games, then all major sport providers are in trouble.

People are cutting the cable cord, that's the real issue, and ESPN's sub losses are reflected in people, finally, getting smart. Its not coincidence a week before earnings Iger was talking about ESPN and other Disney owned channels being offered direct, the problem is Disney from what I can gather don't have a solution in place yet to do it themselves. I read constant speculation about Disney and Apple teaming up for some kind of all in one cable solution but until I see massive infrastructure developments, its just rumors.

DIS is still a bull. For now.

Won't all the revenue from the new Star Wars and its associated merchandise still be chump change compared to how ESPN will be performing at the time?

 

[ford91exploder]

Won't all the revenue from the new Star Wars and its associated merchandise still be chump change compared to how ESPN will be performing at the time?

Yes, If the picture does say 2B the most DIS will see after distribution is $500-$700 million which is indeed chump change compared to the cable networks or P&R.

 

[Mouse Trap]

Won't all the revenue from the new Star Wars and its associated merchandise still be chump change compared to how ESPN will be performing at the time?

You underestimate the power of the force.

No, but really I don't think an extra few billion should be considered "chump change". It isn't too wild to say Star Wars alone will provide an extra 10 billion in revenue over the next 5-6 years. Star Wars will have a huge trickle effect on revs for the next few years. Movies, merchandise, theme parks...it'll all go hand in hand and make lots of money. Compared to ESPN though? Yeah it pales in comparison, but will help offset the losses. Hopefully mid-way through the Star Wars slate we will see ESPN in some sort of bundle or independent streaming.

Oh and by the way, rumored Apple presentation in September? New Iphone and TV package we've been discussing?

 

[Frankie The Beer]

Won't all the revenue from the new Star Wars and its associated merchandise still be chump change compared to how ESPN will be performing at the time?

You want my honest opinion?

Unless Disney starts putting money into developing a way to provide its own content, ESPN is going to start losing subs. While that might seem far fetched, Disney was smart to lock up long term deals with cable providers like Comcast, but those won't last forever. In that time, more people will cut the cord, and it will effect Disney's bottom line. The street pundits were shocked at how ESPN is already starting to feel the slice of the cord cutters already, most were caught with their pants down and some dumped stock. I have to believe, or hope to believe Disney is being proactive in this because it will have to be dealt with under Iger's watch, the death of cable is moving far to fast and fluid.

The easiest solution is to invest in the parks since the parks are a cash cow at the moment.

Star Wars is going to bring in huge merchandising revenue, couple that with the film and it will go toe to toe with ESPN's profits at first. It won't sustain but it don't have to. It will carry Disney's 2016 first quarter to record highs, and record high stock prices.

 

[jt04]

You want my honest opinion?

Unless Disney starts putting money into developing a way to provide its own content, ESPN is going to start losing subs. While that might seem far fetched, Disney was smart to lock up long term deals with cable providers like Comcast, but those won't last forever. In that time, more people will cut the cord, and it will effect Disney's bottom line. The street pundits were shocked at how ESPN is already starting to feel the slice of the cord cutters already, most were caught with their pants down and some dumped stock. I have to believe, or hope to believe Disney is being proactive in this because it will have to be dealt with under Iger's watch, the death of cable is moving far to fast and fluid.

The easiest solution is to invest in the parks since the parks are a cash cow at the moment.

Star Wars is going to bring in huge merchandising revenue, couple that with the film and it will go toe to toe with ESPN's profits at first. It won't sustain but it don't have to. It will carry Disney's 2016 first quarter to record highs, and record high stock prices.

I guess nobody realizes that a lot of the ESPN channels are on Slingtv. Disney put their toe in the water months ago. And who knows how long they have been planning.

MLBtv has been streaming for years. That is where the industry is heading long term. In the meantime expect a lot of growing pains and upheaval.

IMO.

Good time to invest in theme parks to capture those leisure dollars. And gaming.

IMO.

 

[Mouse Trap]

I guess nobody realizes that a lot of the ESPN channels are on Slingtv. Disney put their toe in the water months ago. And who knows how long they have been planning.

MLBtv has been streaming for years. That is where the industry is heading long term. In the meantime expect a lot of growing pains and upheaval.

IMO.

Good time to invest in theme parks to capture those leisure dollars. And gaming.

IMO.

Not to mention ESPN has a lot of major college football games and the college football playoffs locked up until 2025. That alone will make ESPN very sought after for streaming packages.