The Walt Disney Co DIS

Disney’s Business Evolves as More Programming, Including Live Sports, Becomes Available to Stream

Disney is managing the evolution of the media industry, most notably the shift from linear television viewing to on-demand, direct-to-consumer, or DTC, streaming services. Disney was perfectly positioned to take advantage of the traditional model, with its ownership of a national broadcast network, in ABC; the top sports network, in ESPN; and a leading children’s network, in the Disney Channel. These remain very valuable assets that give Disney advantages as the industry evolves, but challenges exist, and we don’t think the new media landscape will be as profitable as the prior one.