Disney is one of the biggest companies that America has to offer. Commonly known for their amusement parks and movie-making giant, they have other subsidiary divisions that aid in their overall value as well.
However, Disney has recently come under fire for featuring an openly gay character in their remake of the classic Beauty and the Beast. It was obviously just preaching and out of place. But despite the controversy, Beauty and the Beast made a staggering $1.18 billion worldwide so far.
But it’s not Disney’s liberal bias in their films that’s bringing down the value of their stock.
The New York Post reports:
“Walt Disney disclosed steeper-than-expected drops in profitability at its ESPN division, pummeling its stock despite strong results at its movie studio and theme parks.
The company’s shares fell more than two percent in after-hours trading on Tuesday, as Disney blamed heavier-than-expected sports contract costs, including higher rates for NBA broadcasts.
‘We are confident in ESPN’s future,’ CEO Bob Iger told CNBC Tuesday, adding that over-the-top platforms are the future of TV.
Disney is joining a slew of other media companies getting punished for declining subscriber counts that are eroding their pay-TV businesses.
The company’s media networks unit, which comprises mainly ESPN and its siblings, reported a 3-percent drop in segment operating income versus the same period last year. The unit reported $2.2 billion in operating income versus $2.29 billion in the year ago period.”
The biggest problem with ESPN is the liberal bias oozing from their on-air personalities who all jump at every opportunity to criticize President Trump.
Whether it’s the Patriots or other future champions who refuse to visit the White House, or berating people who criticize former San Francisco 49ers QB Colin Kaepernick, former subscribers to ESPN are furious that they just can’t seem to stick to sports.
And prominent ESPN analysts used their Twitter accounts to air their grievances about Trump firing of James Comey. The firing of a man – which was obviously a bipartisan decision – and yet liberals suddenly did a 180 upon hearing the news.
This is exactly why people are tired of ESPN. They’re constantly putting their noses where they shouldn’t be.
The New York Post continued:
“Analysts have been laser focused on ESPN’s declining subscriber counts.
According to Nielsen, ESPN is currently distributed in 86.9 million households, down from 89.8 million during May 2016.
The Nielsen number does not include online-only services such as Sling TV and Sony Playstation Vue that also carry ESPN.
ESPN has yet to launch a streaming version of ESPN that is un-tethered from traditional distribution partners such as cable, satellite and telecom companies which under pin its hefty profits.
However, Disney is planning a new, ESPN-branded stand-alone streaming service.
Disney’s earnings beat expectations, at $2.39 billion, or $1.50 per share, in the second quarter ended April 1, versus $2.14 billion, or $1.30 per share, a year earlier, and the $1.30 a share Wall Street had expected.
The upside came as the theme parks’ operating income rose 20 percent, while studio operating income was up 21 percent in the quarter ended April 1.
Revenue, however, missed estimates, rising 3 percent to $ 13.34 billion. Wall Street was hoping for a 3.4 percent bump.”
And ESPN just laid off approximately 100 on-air overpaid personalities because of these recent numbers.
Even still, the big on-air personalities are still there and they still remain the worldwide leader in sports.
But if they continue down this trajectory, they’ll soon lose that honor all together.