Disney’s Feud with Governor DeSantis
The article discusses Disney’s ongoing feud with Florida Governor Ron DeSantis and highlights the struggles the company is facing in its business. Disney recently canceled plans for a $1 billion office project in Florida, which was seen as a tactical move in response to the feud. However, the article suggests that Disney’s business troubles go beyond this conflict.
The company’s financial problems are primarily attributed to its streaming business and declining profit from traditional cable TV. Despite having popular streaming services like Disney+, Hulu, and ESPN+, the streaming division remains unprofitable. Additionally, Disney’s cable and broadcast networks have experienced a 35% decline in operating income due to lower ad revenue.
While the parks division has been a reliable source of profit for Disney, recent pricing and logistical changes have left fans dissatisfied. Complaints about complex planning and feeling nickel-and-dimed have emerged, leading to customer outrage. The article mentions that Disney recently lowered park prices in response to the backlash, but it hasn’t significantly addressed the company’s profit crunch problem.
Investors have also shown concerns about Disney’s performance, as the company’s stock has declined while competitors like Comcast and Warner Bros. Discovery have seen significant growth.
Overall, the article suggests that Disney’s CEO, Bob Iger, faces significant challenges in addressing the company’s financial struggles and existential threats. Winning the public relations battle with Governor DeSantis is one thing, but solving the underlying issues in Disney’s business will require more than legal and communication tactics.
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