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Walt Disney (NYSE: DIS) has filled in the details of its most recent quarter in its annual report — including comments on its returning CEO Bob Iger.
Iger returned to Role of CEO and board Nov. 20, after leaving Disney last December after more than four decades at the company (including 15 years as CEO).
And Iger will reorganize the company in the coming months, the annual report (and in particular he has already said that after the date of employment that the distribution business will be reorganized) – which will bring some money.
“As we have considered the leadership transition, we expect that in the coming months Mr. Iger will initiate changes in the management of the company to achieve the goals of the Board,” says Disney. “Although plans are at an early stage, changes in our design and operations, including within DMED (and including our distribution channel and sales/distribution platforms selected for early distribution), can be expected. Reorganization and changes in business processes, if confirmed, can lead to waste money.”
In the media and entertainment distribution channel, the company says it has “greatly increased its focus on content distribution through our (direct-to-consumer)” versus traditional distribution.
And while it continues to “make a lot of money in traditional media,” the focus on advertising has had several impacts, Disney says, including creating exclusive ads; moving shows to be tracked instead of sold in the TV/video subscription market; and doing online/theatrical productions at the same time.
“Over time, all else being equal, these results tend to increase revenues and expenses on Direct-to-Consumer and decrease revenues and expenses on Content Sales/Licensing and Linear Networks,” it says.
Looking at the details on its cable network, two of its key advertising lines lost subscribers from the previous fiscal year. Disney Channel shed 2M subs to reach 74M, and ESPN lost 2M to regain 74M. (Combined, FX also has 74M subs, and National Geographic has 73M).
Worldwide, Disney Channel has 151M subscribers; ESPN has 62M; Fox has 139M; Nat Geo has 289M; Star General Entertainment 180M; and Star Sports 83M.
Disney posted a disappointing end to its fiscal year, as spending sprees led to deep losses even as the parks continued to shine.
