*By Chloe Aiello*
Disney's new streaming service and its acquisition of Fox assets will be the main fixation when the entertainment giant reports earnings and revenue after market close on Thursday.
Analysts are estimating earnings per share of $1.34 on about $13.73 billion in revenue for Disney's ($DISN) quarter. If the House of Mouse makes the grade, that would mean a 25.2 percent increase in earnings per share and a 7.4 percent boost in revenue since last year.
"There is something almost of a script right now with Disney earnings, where you have a pretty solid quarter out of the theme parks and resort segment, pretty solid quarter out of studios ー we saw Marvel's 'Ant-Man and the Wasp' as their big summer blockbuster ー and then maybe a more muted performance out of media networks, which houses its all-important cable and broadcast and ESPN network," Elaine Low, a reporter for Investor's Business Daily, told Cheddar on Thursday.
Beyond the numbers, investors will be looking for updates on the launch of Disney's dedicated streaming service, progress on the ESPN over-the-top service Disney launched in April, and what newly-acquired Twenty-First Century Fox ($FOXA) assets might mean for the media conglomerate.
"I think we should expect to hear quite a bit of discussion about how the new ESPN+ streaming platform is doing. And what to expect when the new Disney branded streaming platform launches late next year," Low said.
A growing number of cord-cutters have had disastrous effects on Disney’s all-important cable division. But it's preparing to clap back with the roll out of a dedicated Disney streaming service at the end of 2019.
The big question, Low said, is to what extent the streaming service will dominate the market after its launch in late 2019.
But it won't be Disney's first taste of over-the-top services. It's been about six months since Disney rolled out ESPN+ to consumers. The service, which goes hand-in-hand with the ESPN app, targets cord-cutters and cord-nevers by delivering exclusive live programming to subscribers.
Investors "are hoping to see some sort of indication that that is picking up steam and acting as something of a supplemental subscriber driver, where ESPN is losing subscribers," Low said ー but since the company didn't disclose subscriber figures last quarter, investors shouldn't necessarily expect them this time around.
On Tuesday, Disney secured conditional approval from the European Union for its acquisition of select Twenty-First Century Fox assets, including Fox's stake in Hulu, National Geographic, and more than 300 international channels. Investors will likely expect some updates on the acquisition Thursday, particularly as it pertains to Hulu, in which Disney will hold a 60 percent stake after the acquisition.
"\[CEO Bob\] Iger did not rule out the possibility of bundling ESPN+, Hulu and the Disney branded platform on the last quarterly call. We'll see if he has any more thoughts on bundling this time around today," Low said.
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
