WHAT THEY CALL FLIGHT TO
QUALITY.
OUR DOLLAR OR BONDS.
DAVID: GARY, SORRY TO STOP YOU
IN MID-SENTENCE I HAVE GOT TO GO
TO NICOLE.
INFORMATION FOR US WHICH WAY
THINGS ARE GOING.
LOOKS LIKE A MISS ON REVENUE.
MELISSA: BEAT ON EARNINGS.
DAVID: BUT I GUESS A BEAT ON
EARNINGS, IS THAT RIGHT?
>> RIGHT.
WHAT WE'RE LOOKING AT, $1.89 FOR
EARNINGS PER SHARE.
1538 FOR THE ACTUAL REVENUE.
THAT IS A MISS FOR REVENUE, THAT
IS MISS FOR REVENUE VERSUS
ESTIMATES OF 15.40 AND CHANGE.
WITH YOU'RE SEEING THE STOCK IS
UP 1 1/2%.
ONE AREA OF STRENGTH WAS PARKS
AND RESORTS.
WHO LIKES TO GO TO DISNEY THEME
PARKS?
THAT WAS ACTUALLY UP 13%.
MELISSA: WHOA.
>> ESPN NETWORKS REVENUES FOR
THE QUARTER WERE FLAT.
STUDIO ENTERTAINMENT REVENUES
FOR THE QUARTER WERE RELATIVELY
FLAT.
DAVID: THIS MAY BE OF INTEREST
TO YOU.
WHILE IN FACT YOU MENTIONED THE
PARKS WERE UP 13%, WALL STREET
WAS LOOKING UP 12% ON THAT.
TV WAS DOWN 1% THAT SOUNDS BAD
SO THE BOTTOM LINE, NICOLE, THE
TV REVENUE DIDN'T DO AS BAD AS
WALL STREET THOUGHT IT WAS GOING
TO DO.
>> WE HAVE TO TALK ABOUT
EVERYTHING WITH FOX, OBVIOUSLY
THEY WILL BE FORKING OVER
$52 BILLION FOR FOX.
SO THAT WILL BE ANOTHER PART
THAT I WOULD LOVE TO DELVE INTO
A LITTLE BIT MORE BUT IT LOOKS
LIKE HERE FOR EARNINGS PER SHARE
THEY BEAT AND REVENUE MISSED AND
THE STOCK IS LOSING MOMENTUM.
HAD BEEN UP OVER A PERCENT.
UP HALF A PERCENT.
WE'LL LOOK AT THAT FOR THE DOW
TOMORROW.
MELISSA: BRING OUR PANEL BACK
DOMINIC PATTON FROM DEADLINE.
DOMINIC, LET ME ASK YOU, THERE
WAS NEWS BREAKING RIGHT BEFORE
EARNINGS CAME OUT, WHICH WAS NO
SURPRISE, I GUESS, THEY WILL ADD
TO THE "STAR WARS" LIST OF
AND HUGE REVENUE STREAM FOR
DISNEY.
>> OH, MY GOD, SINCE DISNEY TOOK
OVER AND BOUGHT LUCAS FILMS
REJUVENATED THESE FRANCHISES
WHICH WERE SOME OF THE BIGGEST
THINGS AROUND.
MELISSA: WE'RE READING ABOUT THE
FUTURE PLANS.
THEY HAD IN THE PIPELINE, THE
HAN SOLO SPIN-OFF AND ANOTHER
ONE AS WELL, RIGHT?
>> EXACTLY.
MELISSA: TELL ME ABOUT THAT.
>> EXACTLY.
WHAT THEY'RE DOING, THEY
ANNOUNCED BEFORE THE END OF THE
TRADING TODAY, THAT THE
"GAME OF THRONES" EXECUTIVE
PRODUCERS ARE GOING TO PEN NOT
ONE, NOT TWO, BUT THREE NEW
"STAR WARS" MOVIES, NOT DIRECTLY
RELATED TO THE "STAR WARS"
THAT IS A MASSIVE INVESTMENT
JUST THINK ABOUT IT.
YOU MENTIONED SOLO, BUT THEY
HAVE ON FEBRUARY 14th, BLACK
PANTHER, WE'RE LOOKING 120,
150 MILLION OPENING WEEKEND.
WRINKLE IN TIME, WITH OPRAH
WINFREY ON MARCH 9th.
"AVENGERS INFINITI" SUPERHERO
SEQUEL AND SOLO ON MAY FIFTH.
BEFORE WE HIT THE SUMMER.
SOME EARNINGS WE LOOK AT TODAY,
SOME OF THE REPORTS DETECT NOT
SORT OF GIRTH BUT THERE IS
MUSCULAR SLATE FOR DISNEY READY
DAVID: MELISSA, LET ME THROW IN
EARNINGS.
THEY EXCLUDE 1.6 BILLION-DOLLAR
BENEFIT FROM THE NEW TAX CODE.
THAT IS INTERESTING.
THEY'RE DOING PRETTY WELL
WITHOUT THIS BENEFIT.
WHEN YOU ADD 1.6 BILLION IN,
THAT MAKES EARNINGS LOOK EVEN
BETTER.
MELISSA: JOHN, YOU WANT TO REACT
THING FOR DISNEY IS GOING
FORWARD.
CANNIBALIZE YOUR OWN LICENSING
WITH NETFLIX AND TO CREATE OVER
THE TOP.
A BIT OF A GAMBLE YOU'RING
DOING.
THE BIG THING FOR DISNEY HOW
THAT PLAYS OUT.
MELISSA: GARY WHAT DO YOU THINK.
>> SORRY.
>> BEING IN ORLANDO, I CAN TELL
YOU THE PARKS ARE SIZZLING.
THAT IS NUMBER ONE.
LINES ARE BIG.
MOVIES, GREAT PURCHASE WITH
"STAR WARS."
YOU KNOW, THAT IS GOING TO FIRE
BE ESPN AS THEY LOSE PEOPLE TO
THE UNBUNDLING.
THAT IS WHAT IS HURTING THE
STOCK.
AS A STOCK, IT HAS BEEN A
DEFINITIVE UNDERPERFORMER IN THE
DOW 30 FOR LAST YEAR,
YEAR-AND-A-HALF.
MELISSA: DOMINIC, WHAT IS IT YOU
WANTED TO SAY THERE?
>> WHAT I WAS GOING TO SAY, THAT
THE TOP.
DISNEY AND 52 BILLION-DOLLAR
DEAL WITH FOX, DISNEY WILL HAVE
6 60% CONTROL OVER HULU.
DISNEY TAKING PRODUCTS OFF
NETFLIX AND STREAMING
COMPETITORS.
PUTTING THEM, MAYBE LOOK FOR A
BASE IN HULU.
THEY DON'T HAVE TO CREATE A NEW
OVER THE TOP.
THEY HAVE A BASIS AND SOLID
FOUNDATION WHICH THEY NOW
CONTROL HAS GREAT BRANDING,
17 MILLION SUBSCRIBERS AND
GROWING, EVER QUICKLY, WITH HULU
LIVE SHOWING SPORTS LIKE
SUPER BOWL.
THAT COULD BE REAL LAUNCH OFF
POINT NOT JUST FOR "STAR WARS"
BUT ENTIRE DISNEY UNIVERSE.
MELISSA: DAVID, YOU WANT TO HOP
IN.
DAVID: WE HAVE NEWS ON BOB IGER
SUGGESTING IN THE SPRINGTIME
THEY WILL LAUNCH COMPLETELY
REVISED ESPN APP.
SO THE POINT THEY'RE REVISING AN
THE STREAMING BUSINESS MORE
WHOLE HOG, GOING HULU, NOT ONLY
HULU BUT ALSO SLING.
THEY'RE USING TWO METHODS OF
STREAMING INFORMATION FROM ESPN,
RATHER THAN RELYING ON CABLE.
MELISSA: JOHN, DOES THAT GET THE
IT'S A BIT OF A GAMBLE.
YOU'RE TAKING AWAY LICENSING
FEES.
CANNIBALIZING YOUR OWN BUSINESS.
PART OF ESPN SUBSCRIBER LOSS,
THOSE PEOPLE WENT TO HULU AND
SLING AND RED ZONE.
MELISSA: ALL OF US DOES NOT
HAVE, THEY DON'T HAVE CABLE AND
THEY DON'T HAVE DIRECTV THEY'RE