Disney Reports ESPN Has Lost Seven Million Subscribers Due To Cable Cord Cutting

30 Nov 2015 | Author: | No comments yet »

3 Stocks to Track: Walt Disney Co (DIS), Nike Inc (NKE), Petroleo Brasileiro SA Petrobras (ADR) (PBR.A).

Three months after Walt Disney boss Bob Iger warned that ESPN had lost “some” subscribers recently, we now know how much damage on-demand streaming has done to Disney’s powerhouse sports network. Brokerage firm analysts are expecting that Walt Disney Co (NYSE:DIS) will post $1.42 EPS for the current quarter, when the firm reports their next earnings results.Economists in a Bloomberg survey unanimously predict the ECB will add to stimulus, highlighting a policy divergence with the Federal Reserve as the odds of a U.S. interest-rate increase in December remain above 70 percent. The number of ESPN subscribers is now back where it was 10 years ago, after the network shed 3 million customers in its fiscal year ended Oct. 3, according to a released after markets closed Wednesday.

The opposing central-bank leanings have a gauge of the dollar on track for its best month since July and have weighed on assets from emerging shares to gold. “This is a fairly big week between the ECB Thursday and the jobs number on Friday,” Mark Kepner, an equity trader at Chatham, New Jersey-based Themis Trading LLC, said by phone. “These are going to be a pivotal two weeks to set us up through the end of the year.” In addition to the ECB’s policy decision Thursday, the International Monetary Fund will decide this week whether to grant China’s yuan status as a reserve currency, OPEC members will meet to discuss oil production, Fed Chair Janet Yellen will appear before Congress, and then on Friday, the monthly U.S. payrolls report is due. To put it in perspective: With ESPN now at 92 million subscribers, there are more people watching other Disney networks, including the History Channel, Lifetime and A&E, than the once-dominant sports net, which has been the mainstay of Disney’s cable offerings for years. In 2013, ESPN was approaching 100 million subscribers. joins it rivals in struggling against the trend toward media streaming that has battered media stocks for the past year. Now looking at where research analysts believe the stock is headed, brokerage firms have put a $121.388 one year average price target on the stock. 18 analysts polled by Zacks Research were taking into consideration to arrive at this number. Stock is trading in the real-time trading session with the total volume of 5.24 million shares, as compared to its average volume of 8.68 million shares.

The most bullish analyst on the street has a lofty price target of $140, while the most bearish sees the stock going to $98 in that same one year timeframe. Nike Inc (NYSE:NKE) on November 19, 2015 reported that its Board of Directors approved a new four-year, $12 billion program to repurchase shares of NIKE’s Class B Common Stock. And despite its troubles with ESPN, the Burbank, California-based entertainment behemoth is expected to draw $200 million on the opening weekend for the widely anticipated “Star Wars: Episode VII – The Force Awakens.” Opening- weekend revenue from the latest installment in the sci-fi film franchise, which opens Dec. 18, will nearly match the $216 million Disney has lost from ESPN ditchers over a 12-month period. As a result, Zacks offers an analyst brokerage rating (ABR) which simplifies the recommendations into a 1 to 5 sliding scale where one represents a Strong Buy and 5 indicates a Strong Sell.

Analysts say the takeaway is clear: Investors care about subscriber attrition at ESPN, part of a cable unit that provided about 45 percent of Disney’s operating income in fiscal 2015. But they care more, for now, about Walt Disney Studios, which will restart the “Star Wars” movie series on Dec. 18 after a decade of theatrical dormancy.

Its Exploration and Production segment engages in the exploration, development, and production of crude oil, natural gas liquids, and natural gas; and sale of crude oil and oil products produced at natural gas processing plants in domestic and foreign markets. Tim Nollen of Macquarie Securities has estimated that mountains of related merchandise could generate an additional $5 billion in revenue over the next year. The exuberant expectations have, in effect, shifted the conversation about Disney in an unusual way, analysts say, toward a movie’s potential to deliver otherworldly riches and away from the challenges buffeting the broader cable and broadcast television businesses, including the cracks in ESPN’s once-impregnable armor. “It’s amazing how Disney (or market psychology) has been able to divert the focus” away from a decelerating ESPN, Todd Juenger, an analyst at Sanford C.

Bernstein, wrote in a research note on Nov. 18. “Now the single most frequent question we get regarding Disney is, ‘What’s in your model for “Star Wars”?’ ” In retrospect, analysts say, Disney seems to have been remarkably prescient in preparing for a slowdown at its still-formidable cable division, spending $15.5 billion over the last decade to buy Pixar Animation Studios, Marvel Entertainment and Lucasfilm, the studio behind “Star Wars.” As subscriber erosion, a wobbly advertising market and soaring sports rights costs have combined to slow ESPN growth, Disney — to a greater degree than its rivals — has added backup engines, Mr. The technical numbers for The Walt Disney Company are as follows: It has a simple moving average 50 of 4.62%, a 52 week high of -5.69%, and a 52 week low of 28.58%.

Stratospheric ticket sales for “Avengers: Age of Ultron,” produced by Marvel, and Pixar’s “Inside Out” were the primary drivers; the studio also receives a portion of profits from movie-themed merchandise. Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts.. The company is counting on “Star Wars” to buoy its stock price while it also tries to tamp down expectations for the film with investors and the news media. The expectations game is one reason that relying on content for growth is tricky: Unlike cable subscriber fees, which rise at contractually stipulated percentages and times, a movie’s value can only be guessed at in advance. “In December, it’s rare to see a big debut,” Alan F. Disney also noted that only 18 percent of students will be out of school on the film’s opening day and emphasized that the film’s entire run should be the measuring stick.

Still, many box-office analysts expect “The Force Awakens,” which has already generated more than $50 million in advance ticket sales, to deliver the biggest opening weekend in Hollywood history — never mind December. The record-holder is Universal’s “Jurassic World,” which took in $208.8 million over its first three days in June, according to Rentrak, which compiles box-office data. Ask Disney executives that question and prepare for a response akin to Darth Vader’s famous line from the first “Star Wars” movie: “I find your lack of faith disturbing.” But on the last earnings call, Thomas O. Disney has a parade of probable box-office behemoths in the pipeline for next year, including Marvel’s “Captain America: Civil War,” Pixar’s “Finding Dory,” the sequel “Alice Through the Looking Glass” and “Rogue One: A Star Wars Story.” Movies, in other words, could continue to carry the day at the world’s largest entertainment company.

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