Disney’s attempts to launch its own streaming service may be “doomed to failure.”
That’s according to BTIG analyst Rich Greenfield, who says the media giant can’t compete with the likes of Netflix, because it refuses to go “all-in” on streaming.
“They’re trying to do this balancing act where they continue to profit from the legacy business model with ESPN and then try to create a streaming service as an incremental add-on,” he told Cheddar in an interview Wednesday after the company reported earnings. “They’re not putting the entire company into one full effort to make streaming successful. They’re trying to balance multiple profit centers as well as trying to start a new business.”
Disney reported earnings after the bell Tuesday, revealing some details about the streaming services it announced last year. A new series of “Star Wars” films will be released exclusively on its entertainment-focused product, which will launch next year. And ESPN Plus will debut this spring at a cost of $4.99 a month.
And while the company hopes this service will help revive its struggling sports business, Greenfield says ESPN Plus only serves a niche market.
“This is going to be for a superfan who wants an extra college football game or some extra NHL games...extra tertiary content that wasn’t good enough to air on TV,” he said. “This is not taking ESPN and putting it over the top, which is obviously what sports fans want. What consumers are begging for is to not take the big bundle.”
For full interview, [click here](https://cheddar.com/videos/disney-spreads-streaming-magic).
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
