Disney's chief Bob Iger this morning talking to David Faber for an exclusive interview a few moments ago as the company launches this new ESPN flagship streaming app today says the company will not break out sub numbers for the platform. Let's bring in BFA security senior media and entertainment analyst Jessica Ree Erlick. Jessica, welcome back.Good to see you again. >> Thank you. Great to see you.>> Uh struck by Bob's line here just talking about linear losses. I'm I'm paraphrasing but the action doesn't d ...

So we're not going to get a subn number and you feel comfortable not doing that. You think investors are going to be frustrated and trying to understand what what is an incredibly important initiative for you and perhaps not be able to measure it in the way they become accustom and certainly did for for example for Netflix for 15 years until very recently. Again, investors will be able to see how our sports business is doing and this is an important component of it and perhaps that will give them the abilit ...

Group 1: Industry Trends - The National Football League's (NFL) deal to acquire a 10% stake in Disney signifies a shift towards partnerships between entertainment giants and sports leagues, indicating an acceleration in such deals [1] - The rise of digital streaming services is overshadowing traditional broadcast sports, as evidenced by Fox Sports' 2025 deal for IndyCar, which resulted in a 41% increase in viewership [2][3] - Analysts suggest that while streaming prices may face resistance due to economic conditions, the popularity of sports could sustain consumer willingness to pay, benefiting platforms like ESPN [4] Group 2: Company-Specific Developments - Disney's NFL/ESPN deal exemplifies the evolving landscape of sports/media partnerships, raising questions about its implications for investors [6] - The NFL deal is expected to enhance subscriber lifetime value for Disney, although it may not significantly improve profit margins due to associated costs [7][8] - Paramount Skydance's merger and its $7.7 billion deal with TKO Group Holdings for UFC media rights reflect a strategic move to strengthen its sports and streaming assets, with an estimated $300 million in annual advertising revenues [10][12] Group 3: Competitive Landscape - Amazon has made significant investments in sports streaming, including a $3 billion annual commitment, and aims to achieve profitability in its Prime service by 2026 [13][15] - Amazon's exclusive NFL game broadcasts and its recent $100 million deal for a podcast with the Kelce brothers further integrate it into the NFL ecosystem [14] - Rivalry in the streaming market is intensifying, with Alphabet securing the NFL Ticket package, posing a challenge to Amazon's position [16]

Industry News - Disney's ESPN and Fox One 将于 10 月份推出每月 40 美元的捆绑服务，面向体育、新闻和娱乐爱好者 [1]

Group 1 - Disney announced the acquisition of NFL Network and other media assets from the NFL, with estimated value between $2 billion to $3 billion [1] - Disney's market capitalization exceeds $200 billion, significantly larger than competitors like Nintendo and Pop Mart, but less than Netflix [3] - Disney has a history of numerous acquisitions, including major deals like $71.3 billion for 21st Century Fox and $100 billion for Hulu, focusing on IP and content integration [3] Group 2 - Disney ranked first in the global licensing market with projected sales of $620 million [5][7] - The U.S. toy industry saw a 6% increase in sales in the first half of 2025, with Pokémon and NFL cards leading the IP rankings [8] - Disney's streaming services, Disney+ and Hulu, had a combined subscriber count of 183 million as of Q2 2025, while Netflix surpassed 300 million subscribers [9] Group 3 - Disney's revenue for Q2 2025 was $23.65 billion, a 2% increase year-over-year, with entertainment, sports, and experiences segments contributing $10.7 billion, $4.3 billion, and $9.1 billion respectively [10][11] - The entertainment segment's operating income decreased by 15%, while the sports segment saw a 29% increase in operating income due to the divestment of Star India [12][14] - The experiences segment reported a 13% increase in operating income, driven by improved performance in domestic parks [16][17] Group 4 - Disney's acquisition of NFL Network will integrate its operations into ESPN's streaming services, enhancing content offerings across various sports [18] - Disney Accelerator selected four companies for 2025, indicating a focus on trends in AI and 3D printing technologies [20] - Companies like Animaj and Haddy are leveraging AI and 3D printing to innovate in content creation and manufacturing, aligning with Disney's strategic interests [20][25][26]

Group 1: Disney and NFL Partnership - The NFL has acquired a 10% stake in ESPN in exchange for distribution rights to the NFL Network and RedZone, among other assets, marking a significant partnership between Disney and the NFL [1][3] - Disney reported a 3% increase in revenue to $23.7 billion, but faced a 15% decline in linear TV, indicating ongoing challenges with cord-cutting [3] - ESPN will now have access to six additional NFL games, increasing its total from 22 to 28, which is expected to enhance its streaming offerings [3][5] Group 2: Streaming Strategy and Market Position - The integration of NFL content into ESPN's streaming service is seen as a strategic move to attract and retain subscribers, especially as Disney bundles its services with Disney Plus and Hulu [6][8] - Disney's streaming revenue is projected to reach $24.7 billion, while Netflix's is at $44.3 billion, with analysts suggesting that Disney Plus could surpass Netflix in subscribers by 2026 [15][22] - The deal positions Disney to create a comprehensive sports platform that could appeal to both casual and hardcore sports fans, potentially boosting advertising revenue through targeted ads [8][11] Group 3: Competitive Landscape - The partnership with the NFL may create challenges for competitors like Fox, Discovery, and Comcast, as they scramble to secure live sports content [4][5] - The NFL's ambition to reach $25 billion in annual revenue by 2027 aligns with Disney's strategy to further monetize its media assets [5] - The deal could lead to a consolidation of sports content on ESPN, making it a primary destination for sports fans and potentially affecting the distribution of other sports leagues [10][11] Group 4: Financial Performance of Other Companies - Rivian reported a $140 million revenue shortfall due to changes in EV tax credits, which may benefit traditional automakers [19][21] - Shopify had a strong quarter with revenue of $2.7 billion, beating analyst expectations, and reported a 31% year-over-year increase in GMV [22][23] - Upstart achieved over 100% revenue growth and originated 159% more loans year-over-year, marking its first GAAP profitable quarter since Q2 of 2022 [24][25]

Group 1 - The NFL's part-ownership of Disney's ESPN highlights the league's significance in supporting the struggling traditional television industry [2] - Geico and Progressive are recognized for their contributions to maintaining the financial viability and entertainment value of linear television through their advertising efforts [2][3] - The advertising strategies of Geico and Progressive, featuring memorable characters and campaigns, play a crucial role in sustaining the traditional television model [3]

This week on Yahoo Finance Sports Report, host Joe Pompliano takes a look at some of this week’s biggest headlines in the sports business world that you and your portfolio need to know. From Disney (DIS) and ESPN’s deal with the NFL, to Unrivaled basketball’s latest financial play, to Augusta National’s $216,000 hospitality package for the Masters, there are a ton of money moves changing the game. Yahoo Sports Fantasy Analyst Scott Pianowski joins the show to talk about fantasy football as the NFL gets read ...

Core Insights - Disney plans to fully integrate Hulu into its Disney Plus streaming service, with international availability expected next year [1][2] - The Hulu tile will replace the Star tile for international customers this fall, enhancing user choice and convenience [2] - The merger aims to create efficiencies by consolidating technology platforms and may lead to new bundling options for customers [3][4] Group 1 - The integration of Hulu into Disney Plus will allow subscribers to access Hulu content within the Disney Plus app, enhancing the overall user experience [1][2] - CEO Bob Iger indicated that the merger will result in a unified streaming app experience, with improvements and new features being rolled out in the coming months [3] - The merged app will offer a diverse range of content, including family programming, news, and live sports, appealing to a broader audience [3] Group 2 - The new standalone ESPN streaming service will launch on August 21, with pricing starting at $36 per month, and will be included in current Disney bundle offerings [4] - The merger of Hulu and Disney Plus may provide price elasticity and create a more compelling bundling experience for consumers [4] - Future streaming packages may emerge following the integration, potentially enhancing Disney's competitive position in the streaming market [4]

Core Viewpoint - The Walt Disney Company is experiencing revenue headwinds but shows enduring brand strength and improving profitability, particularly following Bob Iger's return to leadership [1][2]. Financial Performance - In Q2, Disney reported net revenue of $23.65 billion, a 2.1% increase year-over-year, with growth in Entertainment and Experiences offsetting declines in Sports [6]. - EBIT grew by 4%, segment operating income by 8%, adjusted earnings by 16%, cash from operations by 41%, and free cash flow by 51%, with adjusted earnings exceeding consensus by nearly 1200 basis points [7]. Business Strategy - The company is focusing on streaming and sports, integrating Hulu and Disney+ to create a more comprehensive streaming solution, and acquiring NFL media assets for ESPN [9]. - Disney's diversified business model and emphasis on quality are contributing to growth despite challenges in Q2 [6]. Market Outlook - Analysts are optimistic about Disney's stock, with a 12-month price forecast of $129.83, indicating a potential upside of 12.58% from the current price of $115.32 [10]. - Institutional investors own 66% of Disney's stock and are buying at a two-to-one pace in Q3, providing a strong market tailwind [12]. Capital Return and Shareholder Value - The company has reduced debt and total liabilities while increasing equity by 7%, despite share buybacks that lowered the share count by 1.2% [10][11]. - Dividend payments are expected to continue steadily, remaining below 20% of forecasted earnings, with an anticipated increase in 2026 [11].