Disney’s revamp of ABC Network and ESPN
While The Walt Disney Company’s (DIS) investors have been worried about ESPN, the company has remained optimistic about the network. The company is trying to take advantage of the online content viewing trend, and it will launch ESPN’s direct-to-consumer service later this year. Disney has also licensed ESPN to streaming services such as Hulu.
The company has also revamped its programming for the ABC Network to revive its flagging primetime ratings and earn more advertising revenue in the process.
Disney’s franchise monetization strategy
Disney also expects its Parks & Resorts business to have higher expenses in 3Q17 as it continues to invest in its US (SPY) theme parks by adding new attractions. The company expects higher merchandise sales for its Consumer Products business in 2H17, as two movies from its Cars and Spider-Man franchises will be released later this year.
Disney also believes strongly in its franchise-focused strategy for its movie business. It will release seven movies this year and 11 movies in 2018.
Disney makes up 0.7% of the SPDR S&P 500 ETF (SPY). SPY has holdings of 4.3% in the computers sector.