By Mae Anderson, Technology Writer
NEW YORK (AP) --Disney has been on a tear the past few years, thanks to popular channels like ESPN, its "Star Wars" and Marvel superhero franchises, and improving results at its global parks.
Now comes the hard part.
CEO Robert Iger's contract runs out next year, creating management uncertainty just as Disney needs to keep its lucrative television offerings relevant in a world increasingly dominated by streaming services.
The company faces "a time of transition" as consumers abandon expensive cable subscriptions, said Morgan Stanley analyst Benjamin Swinburne. That shift threatens Disney mainstays such as ABC and ESPN.
Here's a look at Disney's evolving realities.
LIVE TV NOT SO HEALTHY
ESPN has been one of Disney's crown jewels, but with cable viewership on the decline, its ratings have been under pressure.
Disney revenue and profit both fell in the October-December quarter, hurt by a decline at ESPN and tough comparisons to a year ago, when it released "Star Wars: The Force Awakens." Profit dropped 14 percent to $2.48 billion on revenue that declined 3 percent to $14.78 billion.
Cable network revenue fell 2 percent to $4.4 billion, hurt by lower ESPN revenue. Disney blamed the ESPN results on higher programming costs and lower advertising revenue, partially offset by affiliate revenue growth.
STREAMING AHEAD
So Disney has been working hard to adapt to the new realities of online TV watching.
Its channels — ABC, The Disney Channel, ESPN and others — are all part of less expensive "skinny" channel bundles on streaming services such as Sling TV, Sony PlayStation Vue, and DirecTV now.
Disney also took a $1 billion stake in BAMTech , which provides streaming for Major League Baseball. Disney plans to use that technology for an ESPN streaming service, set to launch this year, which will offer live game streaming and programming not offered on regular ESPN.
Disney might also one day offer a standalone streaming version of ESPN, much the way HBO has with its $15-a-month-service HBO Now.
In a conference call with analysts, Iger said Disney won't rush to offer the ESPN standalone service, in part because the company still makes a lot of money from cable and satellite fees. But he said ultimately it is Disney's "powerful intent to go out there aggressively with digital offerings directed to consumers for ESPN" and other Disney offerings.
Nomura analyst Anthony DiClemente suggests Disney first wants to see how Hulu's live TV service, expected in the next few months, fares. Disney owns 30 percent of Hulu, and will benefit from any subscriber growth the live TV service sparks.
IGER'S FUTURE
Disney is also contending with the looming end of Iger's contract, which expires in June 2018. Since taking the top role in 2005, Iger has acquired Star Wars owner LucasFilm, Pixar and Marvel and driven improvements in Disney's consumer products and parks division, most recently with the opening of Shanghai Disneyland , which opened in 2016.
Speculation has been swirling whether Iger will extend his contract in June. There's no obvious successor at Disney; one heir apparent, COO Tom Staggs, left last year.
Iger, 65, seemed amenable to extending his contract during a conference call with analysts. "If it's in the best interest of the company for me to extend my term, I'm open to that," he said.
Oscar and Emmy-Winning Composer Kris Bowers Joins Barking Owl For Advertising, Branded Content
Music, audio post and sonic branding house Barking Owl has taken on exclusive representation of Oscar and Emmy-winning composer Kris Bowers for advertising and branded content.
Bowers’ recent film scores include The Wild Robot and Bob Marley: One Love, alongside acclaimed past works such as The Color Purple (2023), King Richard and Green Book. His contributions to television are equally impressive, with scores for hit series like Bridgerton, When They See Us, Dear White People, and his Daytime Emmy Award-winning score for The Snowy Day.
In addition to his work as a composer, Bowers is a visionary director. He recently took home the Academy Award for Best Documentary Short Subject for his directorial work on The Last Repair Shop. The emotionally touching short film spotlights four of the people responsible for repairing the musical instruments used by students in the Los Angeles Unified School District (LAUSD). The Last Repair Shop reflects the positive influence that musical instruments have on the youngsters who play them, and the adults in the LAUSD free repair service who keep them working and in tune.
Barking Owl CEO Kirkland Alexander Lynch said of Bowers, “His artistry, diversity of style and depth of storytelling bring an unparalleled edge to the work we create for global brands. His presence on our roster reflects our continued commitment to pushing the boundaries of sound and music in advertising.”
Johanna Cranitch, creative director, Barking Owl, added, “Kris first caught my attention when he released his record ‘Heroes + Misfits’ where he fused together his jazz sensibility with a deeply ingrained aptitude for melody, so beautifully.... Read More