Neil Cybart 8/11/23 Neil Cybart 8/11/23

Disney 3Q23 Earnings, Iger Setting Low Expectations, Disney Raises DTC Streaming Prices

Hello everyone. We end the week with one of the more anticipated earnings releases of the current cycle: Disney. Let’s jump right in.

Disney 3Q23 Earnings

This was not the disaster of a quarter that some were expecting. One could go so far as to say it was an OK quarter, although there are caveats found with that statement.

There were several moving parts found in Disney’s earnings. Expectations of this release being a disaster were never realistic to begin with. More on that shortly.

The moving parts:

Linear Networks (cable/broadcast) results weren’t great with revenue down 7% and operating income down 23%. The weak numbers were found in both Domestic and International.
Parks & Experiences benefited from an easy year-over-year compare for Shanghai Disney Resort (related to COVID closures). Domestic results were on the weak side with just 4% revenue growth. Lower volumes at Disney World were partially offset by Disneyland results that were modestly better year-over-year. The numbers add credibility to the WSJ’s article about fewer visitors at Disney World.

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Neil Cybart 9/22/22 Neil Cybart 9/22/22

Disney CEO Talks ESPN’s Future, Apple’s Sports Play, Apple Watch Ultra Reviews (Daily Update)

Hello everyone. Let's begin today's update in the live sports world.

Disney CEO Talks ESPN’s Future

Last week, Disney CEO Bob Chapek, who recently had his CEO contact extended by three years, sat down with CNBC’s David Faber to talk about ESPN and where live sports goes from here.

Here’s Chapek:

“We're hard at work in our offices, both on the east coast and the west coast, figuring out how we make it more friction-free sports environment for our viewers. And obviously, some of these things take the cooperation of a lot of the people in the ecosystem, whether they be the leagues, other broadcast partners, but we foresee a world where ESPN, even more than ever, is the pinnacle of all your broadcast needs and we’re excited to continue working on that and at some point, when we’re all fully backed, we’ll come back.”

Chapek referred to four broad working areas as to where Disney is focusing ESPN's energy:

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