Despite Hurricane Matthew, Disney's parks and resorts reported a revenue increase of 13 percent, which is roughly $5.2 billion, for the first fiscal quarter. The analyst believes it was "somewhat expected", so he remains unfazed that Studio revenue of $2.50 billion and Consumer/Interactive of $1.45 billion came up a bit short of consensus expectations.
Following a 3% decline in its Media Networks business in Q4, Disney's Media Networks revenue was flat for Q1 at US$6.2 billion.
Disney was largely impacted by lower advertising revenues at ESPN, which more than offset growth in its affiliate revenues and lower programming expenses. The network is attached to a large number of basic cable packages, and when people drop cable its numbers dip.
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Newport's goalkeeper Joe Day sits on the pitch after Serge Aurier's cross was diverted into the net by Newport's Dan Butler . He has made 13 league appearances this season and two more in the FA Cup .
ESPN is about to enter the streaming service business.
Disney will launch ESPN Plus, a new streaming subscription service that is set to make its debut this coming spring for $4.99 per month. "We plan to invest further in the direct-to-consumer feature, adding more live games and produce sports programming, along with even greater personalisation in the years ahead", he added. The offering will be built into ESPN's main mobile app which will be redesigned to have three main sections - scores and news, live streaming via cable authentication, and ESPN Plus. Subscribers would have access to even more live sports not available on ESPN linear networks that also include boxing, golf, rugby and cricket. In the past few months, though, Disney has been more talkative. "Powered by BAMTech's proprietary technology, the service will offer a greatly expanded array of programmes and live events for sports fans who want even more content, as well as for fans interested in sports and events not now featured on the main channels", he noted. All of this extra live action will be events that won't appear on ESPN's linear networks. And for a Netflix-like experience, they will get a library of ESPN Films, including the 30 for 30 series of documentary films. On top of that, Iger noted that the company will begin to create "a robust slate of high-quality original content exclusively for this platform".
ESPN is hoping to stem its losses from dropping membership in recent months by directly competing against the old model of pay television channel bundles.