Disney Faces 'More Change Ahead' As ESPN DTC Launch Will Accelerate Cord Cutting: NBA Rights, College Football Offer Upside, Analyst Says
Portfolio Pulse from Chris Katje
Disney's launch of ESPN's direct-to-consumer (DTC) platform presents both challenges and opportunities. While cord-cutting may accelerate, new NBA rights and NCAA football playoffs could offset potential weaknesses. Analyst Tim Nollen maintains a Neutral rating on Disney, lowering the price target from $94 to $91.

September 19, 2024 | 7:27 pm
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NEUTRAL IMPACT
Disney's ESPN DTC launch may accelerate cord-cutting, posing challenges. However, new NBA rights and NCAA football playoffs could provide revenue boosts. Analyst Tim Nollen maintains a Neutral rating, lowering the price target to $91.
The launch of ESPN's DTC platform is a significant move for Disney, potentially accelerating cord-cutting, which could negatively impact traditional revenue streams. However, the acquisition of new NBA rights and the expansion of NCAA football playoffs are expected to bring in substantial revenue, potentially offsetting the negative impacts. The analyst's Neutral rating and lowered price target reflect the mixed outlook.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100