The network is responsible for Disney losing about half a billion dollars so far this year.
The Walt Disney Company began its fiscal year with a whimper, as the entertainment giant was unable to successfully fend off headwinds facing its cable business, reporting revenue that fell short of expectations.
After the close of markets Tuesday, Disney reported revenue of $14.8 billion and earnings of $1.55 a share for the three months ended Dec. 31, which the company classifies as the first quarter of its fiscal year. Analysts had estimated $15.3 billion in revenue and earnings of $1.50 a share on average for the most recent quarter.
Aww, that’s a shame. I have little use for ESPN, with the rare exception of soccer matches and college lacrosse games on ESPNU. The rest of the channel’s lineup is pure drek, in my opinion.
Cable networks, particularly ESPN, have been an albatross on Disney’s stock price even as the company’s two other major prongs, movies and theme parks, continue to perform well. As cheaper TV alternatives began to proliferate, ESPN hemorrhaged subscribers during the course of 2016 and is now at less than 88 million, compared with a peak of 100.1 million in 2011. At an estimated $7 per subscriber, that dip has been a substantial hit to Disney, especially considering media networks made up 49 percent of Disney’s profits during fiscal 2016.
You know the problem with ESPN – and I’m just spitballin’ here – is they are more about political correctness than they are about, you know, sports. They have led the charge on leftist activism, and have been known to fire analysts with opposing views, fire commentators because idiots see race in everything, and made half their viewership – namely, conservatives – feel unwelcome.
Personally, I would be very happy if ESPN went out of business. Thankfully, it appears their demise will have been self-inflicted.