In this article DIS The Disney+ website on a laptop, July 18, 2022. Gabby Jones | Bloomberg | Getty Images Disney is launching its new ESPN flagship streaming app Thursday, just in time for the football season, bringing customers the full ESPN suite in one place. The entertainment company has been working on the launch of the direct-to-consumer app — which is also named ESPN — for some time. It's designed to expand access for existing cable subscribers and give sports fans outside the traditional pay TV bun ...

>> Coming in hot right now. Sports broadcasting rights getting a huge shakeup this week with ESPN and Fox announcing they are teaming up to create a single streaming service. Also Paramount now striking a $7.7% billion rights deal with the UFC.Lots going on in sports and live sports in particular. Here to talk about that and so much more. Rich Kleiman is boardrooms co-founder and CEO.Good morning to you, sir. Good morning guys. We've got a big event coming up in September which we'll promote and talk about ...

Well, as we of course have told you, Paramount and Sky Dance have officially completed their merger. Long uh wait there. David Ellison taking over as the company's chairman and CEO as of yesterday.And he joins us now in a CNBC exclusive talking about obviously your plans for the company. It's good to have you. Thank you for for being here. Thank you.It's it's a pleasure to be here on day two. Um you know, you and I did have a chance to talk when you first got the deal. That was a long time ago.Finally, I fe ...

Streaming Service Launch - ESPN's direct-to-consumer streaming service will launch on August 21st, priced at $29.99 per month [1] - The service will offer everything ESPN has, including new features for fantasy sports, betting, and personalized sports center, accessible outside the cable bundle [1] - ESPN aims to be agnostic, allowing cable subscribers to authenticate and access the streaming service without additional cost, incentivizing them to maintain their cable subscriptions [1] - The industry is closely watching how many cable subscribers will cancel to opt for the ESPN streaming service, potentially pairing it with other streaming services like Netflix or Amazon [1] WWE Rights Acquisition - Disney is paying $325 million per year over 5 years for the US rights to 10 of WWE's premium live events, previously on Peacock, to be shown on ESPN [1] - These events, including WrestleMania, Royal Rumble, and SummerSlam, will move to ESPN starting in the 2026 calendar year [1] Stock Market Reaction - Disney's stock is up 3 and one-third percent following the news, indicating Wall Street's positive reaction [1] - The NFL will take a 10% stake in ESPN, potentially contributing to the stock's upward movement, signaling long-term security and NFL rights on ESPN [1] Industry Impact - The launch of ESPN's streaming service is a significant media question, affecting every media company tied to the linear cable bundle [1] - The industry is trying to find out how many more customers will cancel traditional cable now that ESPN can be accessed outside the bundle [1]

Company Overview - Netflix has transformed from a DVD rental service to a global entertainment leader, achieving a remarkable 54,700% increase in share price over the past two decades, turning a $1,900 investment in July 2005 into $1 million today [1] - By the end of 2024, Netflix had 302 million subscribers, an 81% increase from 167 million in 2019, demonstrating resilience amid various global challenges [3] Financial Performance - In the first quarter of 2025, Netflix reported a 12.5% year-over-year revenue increase, indicating continued growth [4] - The company achieved an operating margin of 27% in 2024, with expectations to reach 29% in the current year, showcasing the scalability of its business model [6] - Netflix's price-to-earnings (P/E) ratio stands at 60.5, significantly higher than the S&P 500 index, reflecting high market expectations [10] Strategic Initiatives - Netflix is expanding into international markets, particularly in Asia and Africa, while leveraging price increases in more mature markets like the U.S. and Canada [4] - The introduction of an ad-based subscription tier and the crackdown on password sharing are strategic moves to attract price-sensitive consumers [5] - The company is also venturing into live sports, highlighting its adaptability and strategic nimbleness [5] Competitive Landscape - Compared to its main competitor Disney, which forecasts a 10% operating margin for its streaming segment in fiscal 2026, Netflix achieved this margin back in 2018, positioning itself ahead in the streaming industry [7] Market Expectations - Analysts predict a compound annual growth rate of 23.6% for Netflix's earnings per share (EPS) from 2024 to 2027, indicating strong future growth potential [11] - Despite the impressive growth trajectory, the high valuation may limit future investment returns, suggesting that Netflix may not replicate past performance for new investors [12][13]

Core Viewpoint - Netflix has significantly outperformed its competitors in 2025, with a year-to-date share price increase of 33%, while rivals like Apple, Amazon, and Disney have seen declines [1][2][4]. Financial Performance - Netflix reported earnings per share (EPS) of $6.61, exceeding analyst expectations of $5.68 by 16.37%, marking a consistent pattern of outperformance over four consecutive quarters [5]. - Revenue for the quarter was $10.54 billion, slightly above the consensus estimate of $10.50 billion, with a projected operating margin of 29% and $8 billion in free cash flow for 2025 [6]. - The Zacks Consensus Estimate for Netflix's 2025 revenues is $44.46 billion, reflecting a year-over-year growth of 13.99%, while the earnings estimate is $25.32 per share, indicating a 27.69% increase from the previous year [7]. Subscriber Trends - Netflix's member retention and acquisition trends are strong, with new subscribers from major live events showing retention characteristics similar to those joining for premium content, indicating sustainable growth [11]. Advertising Growth Potential - The advertising business is expected to be a significant growth driver, with management anticipating advertising revenues to double in 2025 due to the rollout of a proprietary ad technology platform [12]. - Netflix's advertising currently represents only about 6% of consumer spending and ad revenues in its markets, suggesting substantial room for expansion as the ad platform matures [14]. Content Strategy - Netflix's content strategy is focused on premium storytelling, with significant investments in localized content, including $1 billion in Mexican production and $2.5 billion in Korean content [16]. - The company is also expanding its live programming strategy, which has shown success in generating conversation and retention benefits, alongside premium advertising rates [17][18]. Investment Outlook - Netflix's strong financial performance, innovative advertising capabilities, and expanding content strategy position it for continued success, despite trading at a premium valuation with a forward P/S ratio of 10.84 [19]. - The company's unique position at the intersection of technology and entertainment justifies its premium valuation, as it continues to outperform both traditional media and tech competitors [19][22].

Core Insights - Fox is launching a new subscription-based streaming service called "Fox One" before the fall American football season to expand its audience beyond cable television [1] - The company reported quarterly profit and revenue that exceeded Wall Street expectations, driven by a significant increase in advertising revenue from the broadcast of "Super Bowl LIX" [2][6] - Fox's advertising revenue surged by 65% to $2.04 billion, surpassing estimates, while total revenue rose 27% to $4.37 billion [8] Streaming Strategy - Fox has primarily focused on ad revenue from its free Tubi streaming service, which has approximately 97 million monthly active users, rather than competing directly in the streaming race [3] - The company plans to partner with other distributors and services for Fox One, potentially offering bundled deals to reduce subscriber churn [3][9] - CEO Lachlan Murdoch emphasized that the pricing for Fox One will be healthy and will not undercut cable subscribers [4] Advertising Performance - The broadcast of the Super Bowl attracted an estimated 127.7 million viewers, marking the largest audience in TV history for a single-network telecast [5][9] - Advertisers paid up to $8 million for 30 seconds of commercial time during the Super Bowl, reflecting the high demand for advertising on Fox's platforms [5]