Disney has an advantage in the fact that it can leverage its many brands in an over-the-top offering, and if successful, it will ease investor fears that Disney is "tied to this sinking ship of the traditional bundle." Also, the company doesn't have to duplicate its movie franchise strategy of acquiring notable and valuable properties to see success.
On the other hand, Disney can seek M&A opportunities in its TV segment that are merely "big enough to matter," such as its $1 billion investment for 33 percent of BAMTech.Meanwhile, Disney can make up for some of its losses in the TV segment in its other units. For example, Disney's theme parks will see new attractions including "Star Wars Land," "Toy Story Land" and the possibility of duplicating its "Tron Coaster" in U.S. parks. Also, Disney has many movies in its pipeline, including a new "Star Wars" installment.
"Certainly, it speaks to Disney's strong points which is movies, theme parks, merchandise — not ESPN, not the stuff Wall Street is worried about but all the stuff people are happy about," the analyst emphasized.
Related Links: What's Going Down At The Allen & Company Sun Valley Conference How Will Charter's 'Sports-Free' Cable Bundle Affect Disney's ESPN?© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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