Even Disney's Magical Kingdom Is Going Through Dark Times
Portfolio Pulse from Upwallstreet
Negotiations between SAG-AFTRA actors' union and Hollywood studios, including The Walt Disney Company and Netflix Inc, have failed over issues such as streaming revenue and the use of AI. This has halted production for three months. Disney has also increased its streaming prices for the second time this year due to profitability challenges and loss of subscribers. Disney is also facing a slowdown in its parks business, a broken linear TV business model, and a weak box office. Netflix, despite being the leader in streaming, will also have to deal with increased costs due to writers’ and actors’ strikes.

October 12, 2023 | 6:38 pm
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NEGATIVE IMPACT
Disney is facing multiple challenges including failed negotiations with SAG-AFTRA, increased streaming prices, and a slowdown in its parks business. This could negatively impact its stock price in the short term.
The failed negotiations with SAG-AFTRA have halted production for three months, which could lead to a decrease in revenues. The increase in streaming prices could lead to a further loss of subscribers, negatively impacting revenues. The slowdown in the parks business could also lead to a decrease in revenues.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Netflix, despite being the leader in streaming, will have to deal with increased costs due to writers’ and actors’ strikes. This could negatively impact its stock price in the short term.
The failed negotiations with SAG-AFTRA could lead to increased costs for Netflix due to writers’ and actors’ strikes. This could negatively impact its profitability and hence its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80