Customer cancellations for Disney’s Disney+ and Hulu streaming services jumped in September, after the company briefly suspended the ABC late-night show “Jimmy Kimmel Live!” https://t.co/lcdMpF0xjD ...

The number of people who canceled subscriptions to Walt Disney Co.'s DIS+1.30% streaming services doubled following the company's decision to take late-night host Jimmy Kimmel off the air last month i... ...

Market Overview - Stocks were trading higher at the start of the week, with the S&P 500 and Nasdaq gaining over 1% [1] - The S&P 500 is approaching its record close from October 8, driven by strong performance from Apple [1] - Optimism regarding easing trade tensions between the U.S. and China contributed to the market's strength [1] Company Highlights - Apple is expected to close at a record high due to positive analyst mentions and encouraging iPhone sales [1] - Disney's stock rose over 1% after Citi raised its price target from $140 to $145, anticipating results in line with estimates but projecting fiscal 2026 above consensus [1] - Disney's experiences division forecast was trimmed due to softer macroeconomic conditions, while subscriber trends for Disney+ and Hulu showed increased churn rates in September [1] Upcoming Earnings - No Club earnings are set to be released after Monday's close, but key earnings reports are expected from Danaher, GE Aerospace, Lockheed Martin, RTX, General Motors, 3M, and Coca-Cola [1] - After Tuesday's close, Capital One, a portfolio holding of Netflix, is scheduled to report earnings [1]

Core Insights - The suspension of Jimmy Kimmel Live! led to a significant increase in subscriber churn rates for Disney+ and Hulu, with churn rates reaching 8% and 10% respectively, compared to 4% and 5% in August [1][2] - Social media reactions indicated that some Disney+ subscribers canceled their subscriptions in protest against Disney during the Kimmel incident, which was triggered by a controversial joke [2] - New subscriber data for ESPN and Fox One showed 2.1 million and 1.1 million signups respectively since their launch on August 21, 2023 [3][4] Subscriber Churn Analysis - Disney+ and Hulu experienced a doubling of churn rates during the Kimmel suspension, with Disney+ at 8% and Hulu at 10% [1] - HBO Max also saw an increase in churn to 9% from 8% in August, contributing to an overall rise in churn rates across streaming services [7] New Service Performance - ESPN's new stand-alone service achieved 2.1 million signups, while Fox One reached 1.1 million signups by the end of September [3] - Sign-ups for ESPN and Fox One were notably higher during weekends, particularly around significant sports events [5] Pricing and Churn Relationship - Disney was implementing price increases across its streaming services during the Kimmel incident, which typically leads to short-term churn increases [6] - The overall trend in subscriber churn aligns with Nielsen data indicating a seasonal shift in TV viewing habits, with a resurgence in pay-TV viewing during football season [7]

Core Insights - Cancellation rates for streaming services doubled in September compared to August [1] Group 1 - The increase in cancellation rates indicates a potential shift in consumer behavior within the streaming industry [1]

Here's what investors should look out for when the House of Mouse reports quarterly earnings on Nov. 13. ...

Core Viewpoint - The Walt Disney Company is raising prices on most of its park passes, a move that has become an annual tradition during the holiday season [1][4]. Pricing Changes - Disney World's top-tier 1-Day 1 Park Per Day tickets for November and December 2026 will exceed $199, reaching up to $209, while prices will remain between $119 and $199 until October 2026 [2]. - At Disneyland, ticket prices for peak times like Thanksgiving week will increase from $206 to $224, although the lowest-priced ticket has remained at $104 since 2019 [3]. Reasons Behind Price Hike - The price increase is intended to offset rising wages and operational costs, as well as to support ambitious upgrades and expansion plans, including new attractions at Animal Kingdom and a Villains-themed expansion at Disney World [4]. Company Overview - The Walt Disney Company, founded in 1923, operates in three segments: Entertainment, Sports, and Experiences, and has a market capitalization of approximately $197 billion [5]. - DIS stock has experienced volatility, with shares down 4% over the past month and 9% over the past three months, influenced by the temporary suspension of Jimmy Kimmel's show and subsequent cancellations of Disney+ and Hulu subscriptions [6].

Group 1: Price Increases and Strategy - Disney plans to raise prices for its streaming services on October 21, with the ad-supported Disney+ plan increasing by $2 to $11.99 monthly, and the premium no-ads version rising by $3 to $18.99 monthly. Annual subscribers will see a $30 increase to $189.99 [1] - Bundle packages combining Disney+, Hulu, and ESPN will also see a $3 monthly increase. This marks the second consecutive October that Disney has raised streaming prices, with last year's increases being smaller at $1 to $2 per plan [2] - The price hikes indicate management's ongoing effort to enhance streaming profitability, with the key question being whether subscribers will accept these increases or opt to cancel and resubscribe based on content availability [4] Group 2: Industry Trends and Consumer Behavior - Research from Deloitte shows that households now pay an average of $69 per month for streaming services, reflecting a 13% increase from the previous year. Despite 60% of consumers indicating they would cancel their favorite service after a $5 price increase, many still consider streaming essential [3] - The streaming industry is shifting focus from acquiring new subscribers to retaining existing ones through bundling and exclusive content [3] Group 3: ESPN's Transformation - Disney is transforming ESPN into a comprehensive digital sports platform, launching a direct-to-consumer ESPN service at $29.99 monthly, which includes all 12 ESPN networks and over 47,000 live events [6] - Disney is adopting a hybrid approach by maintaining traditional cable services while expanding its digital offerings to cater to sports fans [6] - An expanded partnership with the NFL will see Disney acquire NFL Network and RedZone in exchange for a 10% stake in ESPN, increasing the number of NFL games available on ESPN from 22 to 28 game windows [7]

Core Viewpoint - The analyst from Rosenblatt maintains a positive outlook on Disney's streaming segment, anticipating strong fourth-quarter results and a boost in stock performance [1][2]. Streaming Segment - The new ESPN streaming platform is expected to reach approximately 500,000 subscribers in its first launch quarter and two million by the end of fiscal 2026, potentially generating nearly $500 million in new revenue in 2026 [3][4]. - Disney+ is projected to add around 500,000 net new domestic subscribers in the fourth quarter, with a potential 15% increase in average revenue per user due to planned price hikes [5]. Financial Performance - The analyst has raised estimates for fourth-quarter earnings per share and fiscal 2026 earnings per share, indicating a positive trajectory for revenue and earnings driven by streaming and parks [3]. - The Experiences segment is expected to see a 7% year-over-year revenue increase in the fourth quarter [6]. Stock Performance - Disney stock has shown positive movement, increasing by 1.2% to $111.15, with a year-to-date increase of 0.3% in 2025 [6].

Executive Appointments - The Walt Disney Company appointed Michael Moriarty as executive vice president and chief financial officer of Disney Experiences, overseeing theme parks, resorts, and cruise ships [2] - Ulta Beauty named Christopher DelOrefice as finance chief, who will start on December 5, succeeding interim CFO Chris Lialios [3] - Liquid Death hired Ricky Khetarpaul as chief financial officer, succeeding Karim Sadik-Khan, who left for another beverage company [4] - TD Bank appointed Andre Ramos as U.S. chief financial officer, effective December 1, transitioning from JPMorgan Chase [5] Background of New CFOs - Michael Moriarty has nearly two decades of experience at Disney, previously serving as CFO at Walt Disney Imagineering and Hong Kong Disneyland Resort [2] - Christopher DelOrefice has over 20 years of experience in finance leadership roles, including at Becton Dickinson and Johnson & Johnson [3] - Ricky Khetarpaul has a strong background in finance, having held positions at Health-Ade, Sabra Dipping Company, and PepsiCo, where he managed a beverage portfolio exceeding $5 billion [4] - Andre Ramos has 11 years of experience at JPMorgan Chase in various business CFO roles, including consumer banking CFO [5]