According to a new document submitted on Wednesday, ESPN's Disney Sports division's profits decreased by 20% in the first nine months of this fiscal year, which more clearly reveals the impact of cable TV users cancelling services on the business.
In the nine months ended July 1st, the newly reported operating profit of the sports department decreased to $1.48 billion, while revenue decreased by 1.3% to $13.2 billion. This department includes ESPN and related channels, Disney's ESPN+streaming services, and a group of sports channels under the Indian Star brand.
In these nine months, the ESPN brand's television network, ESPN programs broadcasted on ABC network, and ESPN+'s profits decreased by 7.8% to $2.06 billion. While seeking potential strategic partners to help shape the future of ESPN content and distribution, the company shared more detailed financial performance of the business.
As Disney hopes to bring its business into the next era, its sports business is facing a series of challenges, including cable TV users cancelling services and rising sports copyright prices. The company is planning to provide ESPN cable television network as a streaming service to users who have cancelled cable television to adapt to changes in consumer tastes.
According to a new document submitted on Wednesday, ESPN's Disney Sports division's profits decreased by 20% in the first nine months of this fiscal year, which more clearly reveals the impact of cable TV users cancelling services on the business.
In the nine months ended July 1st, the newly reported operating profit of the sports department decreased to $1.48 billion, while revenue decreased by 1.3% to $13.2 billion. This department includes ESPN and related channels, Disney's ESPN+streaming services, and a group of sports channels under the Indian Star brand.
In these nine months, the ESPN brand's television network, ESPN programs broadcasted on ABC network, and ESPN+'s profits decreased by 7.8% to $2.06 billion. While seeking potential strategic partners to help shape the future of ESPN content and distribution, the company shared more detailed financial performance of the business.
As Disney hopes to bring its business into the next era, its sports business is facing a series of challenges, including cable TV users cancelling services and rising sports copyright prices. The company is planning to provide ESPN cable television network as a streaming service to users who have cancelled cable television to adapt to changes in consumer tastes.
In the first nine months of this fiscal year, Disney's flagship sports brand accounted for approximately 19% of the company's operating profit.
The document shows that in the sports business field, Disney's domestic business performs better than its international business. According to a previous report by The Wall Street Journal, Disney's Star India has been struggling since losing a highly anticipated cricket rights project, and Disney is currently exploring strategic options for this business.
Due to users' relentless acceleration in canceling cable TV subscriptions, Disney's once lucrative traditional TV business has been greatly affected, forcing them to rethink its future and quickly switch to streaming media business.
According to the documents, in Disney's fiscal year 2022, the revenue of the sports department increased by 8% to $17.3 billion, while operating revenue decreased by nearly 1% to $2.7 billion.