On Tuesday, The Walt Disney Company reported it very god quarterly earnings. The main profit sources were the theme parks and the movies. However, Robert A. Iger, Disney’s chief executive had to answer some questions regarding the fate of once the company’s main profit source, ESPN. Iger received a lot of questions regarding the viewers’ preference towards watching matches or the scores from their smartphones. People no longer sit at home to watch spots shows on their TVs, and this has greatly affected channels like ESPN, which base their income of sport events and viewers.
Parks and movies are soaring
Robert A. Iger also teased an upcoming subscription streaming service with the ESPN brand. He also said that companies like YouTube, Hulu or PlayStation have recently included ESPN in their television packages. The company reportedly values those services as much as cable or satellite TV because they represent the future. In the end, Iger explained the ESPN managers’ efforts to reduce costs by firing about 100 journalists and commentators last month.
Media Networks, which is Disney’s biggest division and which also includes ESPN, reported $2.22 billion I operating income. This was just for the quarter that ended on April 1st. Disney is surely the biggest company in Hollywood. Especially after it acquired hugely-popular brands like “Star Wars”, Marvel and Pixar. It is worth noting that the evolution of technology has also changed the way in which movies are bringing profit. As for sales, as online shopping increases, Disney’s merchandise stores must also keep the pace.
A tough business
The problem of succession is also a prominent one at Disney. It is worth remembering that the company’s heir, Thomas O. Staggs, stepped down last year. Iger, at 66-years old, extended his contract for the third time. He will now retire in 2019. The Walt Disney Parks and Resorts have also registered a strong increase in operating income: $750 million, up from $624 million. The opening of the Shanghai Disney Resort last June also boosted the numbers and provided confidence for Iger who said that the park will attract over 10 million visitors in its debut year. So, it seems like Disney is still going strong and does not seem to stop anytime soon, even when facing tough competition.
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