Disney stock tumbles as TV business slides further toward collapse

Core Insights - Disney reported $22.46 billion in revenue for the quarter, slightly missing analyst expectations, leading to a 5% drop in premarket trading [2] - The entertainment division experienced a 6% decline in revenue, with linear networks dropping 16% to $107 million compared to the previous year [2] - Disney+ and Hulu saw an increase of 12.4 million subscribers, ending the quarter with 196 million subscriptions [2] Revenue Breakdown - The sports segment reported a 2% increase in revenue to $4 billion, but operating income decreased by $18 million to $911 million, with domestic ESPN operating income down 3% [3] - Domestic advertising revenue in sports increased by 8%, but higher marketing and production costs impacted overall operating income [3] Challenges and Disputes - Disney is currently in a carriage dispute with Google, resulting in several networks going dark on YouTube TV, which could cost Disney approximately $60 million in revenue due to a two-week blackout [5] - CEO Bob Iger expressed optimism about resolving the dispute in a timely manner to ensure consumer access to Disney's content [6]