Disney has a money problem that even ‘Star Wars’ can’t fix

Source: The Washington Post

Since "Star Wars: The Force Awakens" first blasted into international theaters Dec. 15, Disney's blockbuster has broken virtually every box-office record in history, becoming on Sunday the fastest film in history to make $1 billion worldwide.

But investors haven't exactly rewarded the media titan: Disney's stock has tumbled more than 6 percent since that premiere, and even analysts impressed with perhaps the biggest film franchise on earth say it's not enough to shield the Big Mouse from its greatest challenge.

Disney's real threat, analysts say, is in cable TV: particularly, in the heavy long-term costs it pays to air sports on its struggling juggernaut ESPN. As more viewers opt to pay less for cable — or cut the cord altogether — Disney's heaping of stunningly pricey sports-TV contracts looks riskier every year.

"Even the Force cannot protect ESPN," BTIG Research analyst Rich Greenfield recently wrote in a note downgrading the stock to "sell." The sports channel long "viewed as the crown jewel of the Disney empire ... now appears poised to become Disney’s most troubled business as consumer behavior shifts rapidly."

FULL STORY: https://www.washingtonpost.com/news/the-switch/wp/2015/12/28/disney-has-a-money-problem-that-even-star-wars-cant-fix/