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[00:00:04] Lee Jackson: Disney. Remember they beat big on streaming theme parks and sports, which of course is ESPN.
[00:00:12] Doug McIntyre: Yep.
[00:00:15] Doug McIntyre: Disney’s earnings came out and quite frankly, they weren’t dreadful. It didn’t, I mean, it didn’t do a huge amount. It’s not like the stock jumped 30%, it’s 30%. No, but they weren’t, they were better than expected. Yeah, and I’ll tell you. I like the fact that they’re making a decent amount of money in streaming.
[00:00:34] Doug McIntyre: I still think that business has a natural cap on it because of Netflix (NASDAQ: NFLX) , and Amazon (NASDAQ: AMZN) | AMZN Price Prediction Prime Video, but it’s better than losing a billion dollars a year on it. So, I mean, I think there’s reason to be optimistic about that. Look, their theme park business is holding up and to me theme parks is still the Disney engine, that and the, the studio, but…
[00:00:58] Doug McIntyre: As long as those theme park parks around the world can charge, they charge like a thousand dollars per child per day or something to go on this ride that much. But
[00:01:07] Lee Jackson: It could cost a thousand for a family of five or six. I bet
[00:01:11] Doug McIntyre: It’s expensive. Will that eventually get knocked? Will know on its bum by a recession.
[00:01:16] Doug McIntyre: Yes. Yeah.It will some, but to me, if the movie thing does, okay. ESPN, listen, it’s a. It’s a business that’s shrinking over time, but it’s still the number one brand. There’s a lot to be said about being number one in your, industry. So I think overall, it took Iger a long time after he came back to get things fixed.
[00:01:44] Doug McIntyre: Yeah, I think he’s a decent way. I think he’s sort of down that road a decent amount.
[00:01:51] Lee Jackson: Yeah, I think he has as well. And like you said, they. Regardless of what you think about ESP or the people that are on there, they do rule because, they have every sport covered and they’re just the standard.
[00:02:03] Lee Jackson: One thing that’s interesting is ESPN vis-a-vis Disney is, buying the NFL networks, channel and all of their programming and all of their, streaming additional programming. And they’ll be interesting to see ’cause. I’m not exactly sure why they need to duplicate what they already have and spend the money to do that.
[00:02:27] Lee Jackson: And I’ve read some pretty critical thoughts on this because how are they gonna mesh that? Are they gonna run an independent from ESPN or, does the NFL network become part of ESPN and actually get featured on ESPN? So that’ll be
[00:02:43] Doug McIntyre: interesting to see. Well also, the NFL, I think gets a 10% stake in ESPN as part of this.
[00:02:50] Doug McIntyre: So there’s a financial incentive on for both parties to make this work. it may be that the NFL’s media and streaming brands just get tucked in under ESPN, but
[00:03:03] Lee Jackson: Yeah, it’ll be interesting to see,
[00:03:06] Doug McIntyre: but it does tell you something. It’s not a strong partnership. It’s not a, Oh my God, partnership, which tells me that as Iger, walked around the media and sports world.
[00:03:18] Doug McIntyre: Th there was nobody who wanted to do a transformative deal with him. Yeah. it’s not like suddenly the NFL wanted to own the whole thing, or that’s stupid, but there were no transformative deals. And here’s the reason. ESPN is still legacy media. You can put lipstick on it.
[00:03:36] Doug McIntyre: You can do whatever you want to. I understand they have some streaming, but, and they still have the biggest problem, and that’s legacy costs. Yeah. That guy, Steven a, who’s one of their hosts, still makes $25 million. they still have legacy costs and it’s the reason that their entire legacy media business is, it’s a boat anchor for them if you’re a shareholder.
[00:03:57] Lee Jackson: Yeah. Yeah. It’s difficult and a lot of people have been let go for numerous reasons, but they’re gone.
[00:04:03] Doug McIntyre: Yeah.
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