Disney Facing 'Margin Erosion' From ESPN, Wieser Says

The transcript discusses Disney's financial outlook, highlighting a 12% downside in its stock price target. Despite a better-than-expected quarter, concerns remain about future expenses and weak advertising markets. ESPN's subscriber decline and rising sports rights costs are major issues, leading to permanent margin erosion. Bob Iger's strategy to diversify revenue is noted, but challenges persist with the consumer products business and competition from tech giants like Facebook, Google, and Amazon.

What major issue does the speaker identify regarding ESPN's impact on Disney?

What factors contribute to the permanent margin erosion faced by Disney?