Disney Chief Executive Robert Iger expressed optimism for the sports network.
“We've never lost our bullishness about ESPN,” Iger said. “The brand is strong. The quality of their programming is strong. There are always opportunities to improve.... But we like where ESPN is these days.”
LA Times said: Overall, it was a weak fiscal fourth quarter for Burbank-based Disney, which reported net income of $1.75 billion, down 1% from a year earlier. Revenue declined 3% and the company failed to meet analysts’ expectations.
The company’s media networks unit — whose crown jewel is ESPN — had a tough quarter, reporting segment operating income of $1.48 billion, a drop of 12% from a year earlier. Its operating income declined on a year-over-year basis for the sixth quarter in a row.
CNBC says: The Walt Disney Company share gained after the company said it plans to price its streaming service "substantially below" that of Netflix.
The company said, however, that its service will be cheaper because it will initially have a smaller library than what the streaming giant offers. Disney said its goal is to attract as many subscribers as possible when it launches the service.
The price tag would be adjusted over time to mirror the volume of content that is added to the service, Disney said during its earnings call.
As part of a strategic shift, Disney will no longer stream its movies on Netflix starting in 2019 and instead offer them on a new streaming service of its own. The company also intends to launch a separate streaming service for ESPN in 2018.
Disney’s Fiscal Full Year and Q4 2017 Earnings Results Webcast