By Ryan Nakashima, Business Writer
LOS ANGELES (AP) --Disney is allaying concerns about cord-cutting after reporting better-than-expected revenue in the cable-network division that houses ESPN.
CEO Bob Iger told CNBC that he remains "bullish" about the TV business. Three months earlier, Disney set off a wave of selling in media stocks after trimming its future guidance due to a modest decrease in ESPN subscribers. Last month, Disney cut about 300 jobs at ESPN and shuttered its popular Grantland website.
"The fact remains that the industry did lose some (subscribers) last year," he told CNBC. "Now is that a reason to panic? Absolutely not. People still love television, the still love ESPN and they love live sports."
Thursday's comments come the same day Disney announced it is licensing ESPN and other channels to Sony's PlayStation Vue online TV service, a bundle of over 50 channels that is still smaller than most traditional pay TV packages and costs $50 a month.
Iger told analysts on a conference call that Disney would continue to license its top networks to new entrants with slimmer bundles of channels that are more attractively priced to young people. He also said ESPN remains a key driver of the popularity of new offerings, including Vue.
"They came to us to negotiate a deal because it was clear the product that they had launched was not penetrating the market as much as I think they were expecting," he said.
Disney said Thursday that revenue at its leading business, cable networks, rose 12 percent to $4.25 billion in the fiscal fourth quarter, beating the $4.22 billion expected by analysts polled by FactSet. An increase in subscribers at its newly launched SEC Network partially offset a decline "at certain of our networks," the company said, without specifying.
Overall, revenue rose 9 percent to $13.51 billion, shy of the $13.55 billion expected. But adjusted earnings grew to $1.20 per share from 89 cents a year ago, beating the $1.15 expected.
Shares of Walt Disney Co., which is based in Burbank, California, were down 10 cents at $112.90 in after-hours trading. That's still about 7 percent below the close immediately before last quarter's earnings call set off a pullback in media sector stocks.
Mike Pierantozzi joins Movers+Shakers as exec creative director
Creative agency Movers+Shakers has appointed Mike Pierantozzi as executive creative director. In this new role, he will help guide the creative direction of Movers+Shakers’ socially-native campaigns. Pierantozzi will report to co-founder and chief creative officer Geoffrey Goldberg.
With nearly two decades of experience as a copywriter, creative director, and multi-platform storyteller, Pierantozzi brings a wealth of knowledge from his work with major brands including Kraft, Unilever, IBM, and Walmart. He has led the creation of award-winning campaigns for agencies like Red Tettemer, Ogilvy, The Brooklyn Brothers, TAXI, Saatchi & Saatchi, and most recently, Vayner, where he spearheaded culturally iconic work for Planters including “Death of Mr. Peanut.” He led the National Down Syndrome Society and Luvs account, whose “First Kid. Second Kid” campaign was awarded by the Effies, ADC, Clios and LIAs.
Outside of the office, Pierantozzi practices what he teaches brands. He’s gone viral multiple times on his own TikTok account, featuring comedic interactions with his son and a trombone. He’s accumulated 15K followers on TikTok.
“Mike brings a rare and awesome combination of deep social and platform experience, a keen eye for excellent storytelling, and a humble and kind approach to leadership,” said Goldberg. “Mike’s got a knack for turning brand stories into cultural movements, making him the perfect fit for Movers+Shakers. He’s got the kind of bold vision and attention to culture that fits perfectly with our mission to push creative boundaries and drive industry firsts. Plus, as a creator himself he has the innate ability to make people stop, laugh, and share--which is exactly what we’re about.”
“I’ve... Read More