ADVERTISEMENT

Here's how TV channel can get its mojo back

Disney has been struggling of late due to falling ESPN advertising revenue and 2% annual subscriber erosion at ESPN.

Sports center
ADVERTISEMENT

Disney has been struggling of late due to falling ESPN advertising revenue and 2% annual subscriber erosion at ESPN for the last three years.

Programming costs were also higher toward the end of last year, escalated by the costs of Olympics programming, rights to air the World Cup of Hockey, and higher rates for college sports.

"It remains a time of transition at Disney, as it evolves its ESPN/ABC distribution model to attempt to reach consumers that have been opting out of the pay-TV bundle," according to the team.

ADVERTISEMENT

They expect ESPN to launch an à la carte service, like CBS and HBO have. "We expect the la carte and bundled offerings will co-exist for a long time, creating more earnings stability than the market presumes."

Morgan Stanley also note that new initiatives across Disney's domestic and international parks like the recently opened park in Shanghai could drive significant return on investment and lift earnings power.

FOLLOW BUSINESS INSIDER AFRICA

Unblock notifications in browser settings.
ADVERTISEMENT

Recommended articles

Sony’s creators convention redefines the creative landscape for content creators

Sony’s creators convention redefines the creative landscape for content creators

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

Egypt, Nigeria, and South Africa ranked as Africa's most polluted countries in new report

10 African countries with the lowest life expectancy according to the World Bank

10 African countries with the lowest life expectancy according to the World Bank

Kenyan women are more obese than their men - here’s why

Kenyan women are more obese than their men - here’s why

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

Africa’s richest man Dangote stands between Europe and $17 billion in revenue

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

After months of exchanging blows, Kenya and Uganda takes steps towards resolution

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

Africa's first black billionaire could join $2.9 billion Vivendi bid for MultiChoice

10 most dangerous African countries in 2024

10 most dangerous African countries in 2024

Russia’s nuclear influence expands further north of Africa

Russia’s nuclear influence expands further north of Africa

ADVERTISEMENT