Sightful Invest
  • Business
  • Investing
  • Politics
  • Stock
Top Posts
Trump considers tax hike on Americans making $2.5...
GOP senators: Congress should vote on Trump’s potential...
White House highlights over $2B in savings from...
GOP talk on millionaire tax hike ‘makes no...
Trump’s first vice president urges his old boss...
Department of Justice opens criminal investigation into NY...
Trump claims ‘I don’t know her’ and ‘listened...
Rubio just got an additional job in Trump’s...
OpenAI’s Sam Altman thanks Sen John Fetterman for...
Former Supreme Court Justice David Souter dead at...
  • Business
  • Investing
  • Politics
  • Stock

Sightful Invest

Business

In a reversal, Disney’s media assets are starting to generate more excitement than its parks

by admin August 9, 2024
August 9, 2024
In a reversal, Disney’s media assets are starting to generate more excitement than its parks

Here’s a surprise: Disney’s media business isn’t weighing down the company anymore.

The primary Disney investor narrative since 2022 has been how streaming losses, combined with a declining traditional pay TV business and a string of box office failures, have been anchoring surging sales and profits at the company’s theme parks and resorts. The result has been a company whose shares have fallen about 24% in the past two years, while the S&P 500 has gained 28% in the same period.

The company’s second-quarter results suggest a shift is happening. Disney’s combined streaming businesses — Disney+, Hulu and ESPN+ — turned a quarterly profit for the first time ever, making $47 million. That’s a significant improvement from losing $512 million in the same quarter a year ago.

Disney’s theatrical unit is also on a hot streak. “Inside Out 2” became the highest-grossing animated film of all time in recent weeks. “Deadpool & Wolverine” has taken in $824 million after two weeks of global release. Disney has become the first studio in 2024 to top $3 billion in worldwide ticket sales.

Meanwhile, Disney saw a “moderation of consumer demand towards the end of [fiscal] Q3 that exceeded our previous expectations” for its theme parks division. That caused shares to slump about 3% in early trading.

Disney Chief Executive Officer Bob Iger said during his company’s earnings conference call that he expects the momentum for the media business will only gain steam. That’s music to the ears of Wall Street, which wants both growth and profitability.

“We feel very bullish about the future of this business,” Iger said in reference to streaming. “You can expect that it’s going to grow nicely in fiscal 2025.”

Iger referenced a planned crackdown on password sharing, which will begin “in earnest” in September, as a tool that will help generate new subscribers and added revenue for the company. A similar effort from Netflix has helped the world’s largest streamer add new customers during the past year.

Disney is also raising prices for its streaming services in mid-October. Most plans for Disney+, Hulu and ESPN+ will cost $1 to $2 more per month.

Iger rattled off a list of movie titles that Disney hasn’t yet released to emphasize the studio’s solid positioning for the rest of 2024 and beyond.

“Let me just read to you the movies that we’ll be making and releasing in the next almost two years,” Iger said. “We have ‘Moana,’ ‘Mufasa,’ ‘Captain America,’ ‘Snow White,’ ‘Thunderbolts,’ ‘Fantastic Four,’ ‘Zootopia,’ ‘Avatar,’ ‘Avengers,’ ‘Mandalorian’ and ‘Toy Story,’ just to name a few. When you think about not only the potential of those in box office but the potential of those to drive global streaming value, I think there’s a reason to be bullish about where we’re headed.”

Disney isn’t de-emphasizing the parks. The company said last year it plans to invest $60 billion in its theme parks and cruise lines in the next decade. But it’s undoubtedly healthier for the company to persuade investors that the media units aren’t weighing down the share price.

Disney shares dropped Wednesday, likely because investors were focused on the parks. The next step is for shares to rise during a quarterly earnings report because investors are excited about the media units.

This post appeared first on NBC NEWS

previous post
Stocks fall as comeback rally falters; Dow lower by 100 points
next post
Grid Announces Appointment of New Director and Re-Engages TD Media d/b/a Life Water Media to provide Media Services

You may also like

Google CEO Pichai struggled to navigate a pressure-filled...

December 31, 2024

How the Olympics helped transform Salt Lake City...

December 12, 2024

Party City to close all of its stores,...

December 21, 2024

CarShield ordered to pay $10 million federal settlement...

August 2, 2024

Home prices hit record high in June on...

September 3, 2024

The housing crunch is still squeezing buyers —...

July 31, 2024

As Trump eyes more tariffs, South Korea remains...

February 15, 2025

CEOs want workers back in offices—this company is...

February 22, 2025

Top liquor distributor favored Costco and Kroger over...

December 14, 2024

Domino’s Pizza finally launches stuffed crust to keep...

March 4, 2025

Recent Posts

  • Trump considers tax hike on Americans making $2.5 million or more per year
  • GOP senators: Congress should vote on Trump’s potential Iran nuclear deal
  • White House highlights over $2B in savings from DEI cuts during Trump administration’s first 100 days
  • GOP talk on millionaire tax hike ‘makes no sense,’ Trump White House alum says
  • Trump’s first vice president urges his old boss against raising taxes on wealthy Americans

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Categories

    • Business (712)
    • Investing (2,058)
    • Politics (2,553)
    • Stock (4)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sightfulinvest.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 Sightful Invest. All Rights Reserved.