Menu
Download the app

SBJ subscribers – Enhance your experience with the revamped iOS app

Finance

Disney Posts Record Q3 Results Despite ESPN's Higher Costs, Lower Subscriber Base

Skyrocketing sports-rights costs "caught up to ESPN last quarter, providing a setback in an otherwise stellar quarter for Walt Disney Co.," according to Ben Fritz of the WALL STREET JOURNAL. Hit by "a combination of higher costs" for MLB and the FIFA World Cup, as well as "a shrinking subscriber base for ESPN and certain timing issues, operating income at Disney's cable networks group fell" 7% to $1.9B during the quarter ended June 28. It was the "only one of the company's business units not to report double-digit, or higher, growth in operating income." Disney CFO Jay Rasulo said that along with higher costs, ESPN's "subscriber losses were 'modest' and 'mostly economically driven,' presumably from people switching to cheaper cable packages or abandoning pay television altogether." Affiliate revenue "grew in the mid-single-digit percentages last quarter, affected by contractual provisions." Such fees are "a key driver of ESPN's business." Comparisons to the same quarter last year "were hurt" by nearly $100M "less in deferred revenue recognition as well as the sale last summer" of ESPN's U.K. business (WALL STREET JOURNAL, 8/6). VARIETY's Marc Graser noted for Disney's TV business "soccer saved the day," in what was the "best quarter in the company’s history." The timing of the World Cup helped ESPN and ABC "post stronger results, with soccer matches in Brazil helping attract record audiences for ESPN during what's typically a slow period for networks during the summer." Disney's media networks, which "typically account for 45% of the company's revenue each year, saw sales increase" 3% to $5.5B, again "primarily from World Cup matches" (VARIETY.com, 8/5). At presstime, shares of Disney were trading at $87.35 per share, up nearly 1% from the close of business yesterday (THE DAILY).

SBJ Morning Buzzcast: March 25, 2024

NFL meeting preview; MLB's opening week ad effort and remembering Peter Angelos.

Big Get Jay Wright, March Madness is upon us and ESPN locks up CFP

On this week’s pod, our Big Get is CBS Sports college basketball analyst Jay Wright. The NCAA Championship-winning coach shares his insight with SBJ’s Austin Karp on key hoops issues and why being well dressed is an important part of his success. Also on the show, Poynter Institute senior writer Tom Jones shares who he has up and who is down in sports media. Later, SBJ’s Ben Portnoy talks the latest on ESPN’s CFP extension and who CBS, TNT Sports and ESPN need to make deep runs in the men’s and women's NCAA basketball tournaments.

SBJ I Factor: Nana-Yaw Asamoah

SBJ I Factor features an interview with AMB Sports and Entertainment Chief Commercial Office Nana-Yaw Asamoah. Asamoah, who moved over to AMBSE last year after 14 years at the NFL, talks with SBJ’s Ben Fischer about how his role model parents and older sisters pushed him to shrive, how the power of lifelong learning fuels successful people, and why AMBSE was an opportunity he could not pass up. Asamoah is 2021 SBJ Forty Under 40 honoree. SBJ I Factor is a monthly podcast offering interviews with sports executives who have been recipients of one of the magazine’s awards.

Shareable URL copied to clipboard!

https://www.sportsbusinessjournal.com/Daily/Issues/2014/08/06/Finance/Disney-ESPN.aspx

Sorry, something went wrong with the copy but here is the link for you.

https://www.sportsbusinessjournal.com/Daily/Issues/2014/08/06/Finance/Disney-ESPN.aspx

CLOSE