Why Disney's Earnings Report Has Investors Selling

The video discusses Disney's financial performance, focusing on the decline in operating income despite increased revenue. It highlights the impact of new programming costs in the entertainment division and parks. The discussion shifts to Disney's pricing strategy for its streaming service, including a gradual price increase and the introduction of the STAR brand. The video also examines the effects of programming costs on operating income and the market's reaction to Disney's stock performance, questioning if this signals a slowdown in Disney Plus growth.

What was a significant factor contributing to the decline in Disney's operating income despite increased revenue?

• Decreased visitor numbers in parks

• High programming costs in media and entertainment

• Reduction in merchandise sales

• Lower ticket prices for sporting events

How is Disney attempting to manage its pricing strategy for Disney Plus?

• By offering free trials to new subscribers

• By introducing a new brand and gradually increasing prices

• By offering discounts to existing subscribers

• By reducing the content available on the platform

What is one of the reasons for the decrease in operating income in Disney's media and entertainment division?

• Decline in theme park attendance

• Higher costs associated with sports programming

• Reduction in merchandise sales

• Increased competition from other streaming services

What was the market's reaction to Disney's recent performance in terms of stock price?

• The stock price increased by 13%

• The stock price decreased by 3%

• The stock price remained stable

• The stock price increased by 3%

What concern do investors have regarding Disney Plus?

• The availability of the service in Europe

• The potential for long-term subscriber growth slowdown

• The platform's content quality

• The cost of the subscription