Disney is where dreams come true — and Bob Iger is inching closer to his dream of a profitable streaming service. Last quarter, Disney’s streaming losses shrunk to just $18M — a vast improvement from the $659M loss in the same period the previous year. Iger took decisive action, streamlining Disney+ by trimming content for tax benefits, scaling back production, and reducing marketing spend. So, why did Disney’s stock plummet 10% yesterday?
- Despite the good news, had its worst trading day in years as analysts fretted over the faster-than-expected decline in traditional TV revenues.
- Plus, investors frowned upon some hefty expenses on Disney’s balance sheet — like a $2B charge related to the Star India deal and the expensive new cruise ship.
Let the games begin: ESPN’s operating income dropped by 9% last quarter due to dwindling cable subscribers — underscoring the pressing need for Disney to crack the sports streaming market. The first move is integrating ESPN into the Disney+ app, slated for later this year. Disney is also gearing up for its sports streaming bundle alongside Fox and Warner Brothers-Discovery. With Iger’s tenure winding down, he’s adopting an aggressive stance — but will it be enough to outrun Amazon’s push into sports?
