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Disney's streaming business (sans ESPN+) turns a quarterly profit

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Disney's streaming business (sans ESPN+) turns a quarterly profit

Walt Disney Co. is making massive strides toward making its streaming business profitable, a milestone that comes none too soon as its traditional TV networks continue to decline.

The Burbank media and entertainment giant reported overall streaming business revenue of $6.19 billion for the second fiscal quarter of 2024, up 12% compared with a year earlier. Disney’s streaming business — which includes Disney+, Hulu and ESPN+ — reported an operating loss of $18 million for the three-month period that ended March 30, a 97% change from last year, when it reported losing $659 million.

The company’s “entertainment streaming” business, which consists only of Disney+ and Hulu (and not ESPN+), was profitable during the quarter, notching operating income of $47 million, compared with a loss of $587 million a year earlier. Excluding ESPN+, streaming revenue of $5.64 billion was up 13% from a year earlier.

Overall, Disney generated $22.1 billion in revenue that quarter, up 1% from the same period a year earlier. Sales came in roughly in line with analysts’ estimates, according to FactSet. Earnings, excluding certain items, were $1.21 per share, up from 93 cents a year earlier and better than the $1.10 that analysts had predicted, on average.

Disney Chief Executive Bob Iger noted the growth in streaming in a statement, saying that the business, in addition to the company’s continued strength in experiences, which includes the parks, drove the company’s second-quarter performance.

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Disney’s investment in streaming, which accelerated to grow the Disney+ service that launched in 2019, has lost billions of dollars to date. The company expects its combined streaming operations to finally turn a profit in the fiscal fourth quarter of 2024.

This marks Disney’s first quarterly earnings report since Iger trounced activist investor Nelson Peltz in a proxy fight, in which Peltz had sought a board seat. Investors, in a vote tallied at Disney’s annual shareholder meeting in April, decisively rejected Peltz’s bid.

Peltz, among other things, had demanded that Disney show a realistic plan for Netflix-like profit margins in the costly streaming business. To get Disney closer to its profitability goals, Iger waged a severe cost-cutting plan, eliminating more than 8,000 jobs.

“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results,” Iger said in a statement.

Although Disney’s streaming business was a bright spot for its entertainment segment, the company’s linear TV business struggled in the quarter, reporting $2.77 billion in revenue, a decrease of 8% compared with a year earlier. The linear networks reported operating income of $752 million, down about 22% from the same period last year.

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The company said its losses in linear networks stemmed from lower affiliate revenue because of a decrease in subscribers after Spectrum dropped eight networks, including Freeform and Disney Junior, from its lineup as part of Disney’s new cable licensing agreement with cable giant Charter Communications. Those negotiations resulted in a more-than-10-day blackout of ESPN and ABC channels as the two companies hashed out an agreement.

The company’s film studio business also struggled, with revenue falling 40% to $1.39 billion for an operating loss of $18 million. Disney posted weak box-office results compared with last year’s second quarter, when it had Marvel’s “Ant-Man and the Wasp: Quantumania” and “Avatar: The Way of Water.”

Disney movies have had a weak run in 2024 and the company is hoping for a rebound with “Kingdom of the Planet of the Apes,” “Inside Out 2” and “Deadpool & Wolverine.”

Disney’s sports sector reported revenue of $4.31 billion, up 2% compared with a year earlier. ESPN operating income was $778 million, down 2% from the year-earlier period.

Meanwhile, its “experiences” division — which encompasses theme parks such as Disneyland and Walt Disney World; cruise lines and consumer products — continued to drive profit for the company with $8.39 billion in revenue, an increase of 10% from a year earlier. Operating income from the parks division was $2.29 billion, up 12%. The segment accounted for 59% of the company’s operating income.

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The growth in experiences came from higher results at Walt Disney World in Florida and Disney Cruise Line, the company said.

Additionally, Disney took a $2-billion write-down of its troubled Star India business after agreeing to merge the operations into a joint venture controlled by rival Reliance Industries, a major Indian conglomerate. The Star India business, along with its HotStar streaming service, became part of Disney through its 2019 acquisition of 21st Century Fox.

Movie Reviews

Movie Review: A Home Invasion turns into a “Relentless” Grudge Match

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Movie Review: A Home Invasion turns into a “Relentless” Grudge Match

I’d call the title “Relentless” truth in advertising, althought “Pitiless,” “Endless” and “Senseless” work just as well.

This new thriller from the sarcastically surnamed writer-director Tom Botchii (real name Tom Botchii Skowronski of “Artik” fame) begins in uninteresting mystery, strains to become a revenge thriller “about something” and never gets out of its own way.

So bloody that everything else — logic, reason, rationale and “Who do we root for?” quandary is throughly botched — its 93 minutes pass by like bleeding out from screwdriver puncture wounds — excruciatingly.

But hey, they shot it in Lewiston, Idaho, so good on them for not filming overfilmed Greater LA, even if the locations are as generically North American as one could imagine.

Career bit player and Lewiston native Jeffrey Decker stars as a homeless man we meet in his car, bearded, shivering and listening over and over again to a voice mail from his significant other.

He has no enthusiasm for the sign-spinning work he does to feed himself and gas up his ’80s Chevy. But if woman, man or child among us ever relishes anything as much as this character loves his cigarettes — long, theatrical, stair-at-the-stars drags of ecstacy — we can count ourselves blessed.

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There’s this Asian techie (Shuhei Kinoshita) pounding away at his laptop, doing something we assume is sketchy just by the “ACCESS DENIED” screens he keeps bumping into and the frantic calls he takes suggesting urgency of some sort or other.

That man-bunned stranger, seen in smoky silhoutte through the opaque window on his door, ringing the bell of his designer McMansion makes him wary. And not just because the guy’s smoking and seems to be making up his “How we can help cut your energy bill” pitch on the fly.

Next thing our techie knows, shotgun blasts are knocking out the lock (Not the, uh GLASS) and a crazed, dirty beardo homeless guy has stormed in, firing away at him as he flees and cries “STOP! Why are you doing this?”

Jun, as the credits name him, fights for his PC and his life. He wins one and loses the other. But tracking his laptop and homeless thug “Teddy” with his phone turns out to be a mistake.

He’s caught, beaten and bloodied some more. And that’s how Jun learns the beef this crazed, wronged man has with him — identity theft, financial fraud, etc.

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Threats and torture over access to that laptop ensue, along with one man listing the wrongs he’s been done as he puts his hostage through all this.

Wait’ll you get a load of what the writer-director thinks is the card our hostage would play.

The dialogue isn’t much, and the logic — fleeing a fight you’ve just won with a killer rather than finishing him off or calling the cops, etc. — doesn’t stand up to any scrutiny.

The set-piece fights, which involve Kinoshita screaming and charging his tormentor and the tormentor played by Decker stalking him with wounded, bloody-minded resolve are visceral enough to come off. Decker and Kinoshita are better than the screenplay.

A throw-down at a gas-station climaxes with a brutal brawl on the hood of a bystander’s car going through an automatic car wash. Amusingly, the car-wash owners feel the need to do an Idaho do-si-do video (“Roggers (sic) Car Wash”) that plays in front of the car being washed and behind all the mayhem the antagonists and the bystander/car owner go through. Not bad.

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The rest? Not good.

Perhaps the good folks at Rogers Motors and Car Wash read the script and opted to get their name misspelled. Smart move.

Rating: R, graphic violence, smoking, profanity

Cast: Jeffrey Decker, Shuhei Kinoshita

Credits:Scripted and directed by Tom Botchii.. A Saban Entertainment release.

Running time: 1:34

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About Roger Moore

Movie Critic, formerly with McClatchy-Tribune News Service, Orlando Sentinel, published in Spin Magazine, The World and now published here, Orlando Magazine, Autoweek Magazine

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Inga Ibsdotter Lilleaas breaks out in ‘Sentimental Value.’ But she isn’t interested in fame

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Inga Ibsdotter Lilleaas breaks out in ‘Sentimental Value.’ But she isn’t interested in fame

One of the most moving scenes in Joachim Trier’s “Sentimental Value” happens near the end. During an intense moment between sisters Nora (Renate Reinsve) and Agnes (Inga Ibsdotter Lilleaas), who have both had to reckon with the unexpected return of their estranged father, Gustav (Stellan Skarsgård), Agnes suddenly tells Nora, “I love you.” In a family in which such direct, vulnerable declarations are rare, Agnes’ comment is both a shock and a catharsis.

The line wasn’t scripted or even discussed. Lilleaas was nervous about spontaneously saying it while filming. But it just came out.

“[In] Norwegian culture, we don’t talk so much about what we’re feeling,” explains Lilleaas, who lives in Oslo but is sitting in the Chateau Marmont lounge on a rainy afternoon in mid-November. If the script had contained that “I love you” line, she says, “It would’ve been like, ‘What? I would never say that. That’s too much.’ But because it came out of a genuine feeling in the moment — I don’t know how to describe it, but it was what I felt like I would want to say, and what I would want my own sister to know.”

Since its Cannes premiere, “Sentimental Value” has been lauded for such scenes, which underline the subtle force of this intelligent tearjerker about a frayed family trying to repair itself. And the film’s breakthrough performance belongs to the 36-year-old Lilleaas, who has worked steadily in Norway but not often garnered international attention.

Touted as a possible supporting actress Oscar nominee, Lilleaas in person is reserved but thoughtful, someone who prefers observing the people around her rather than being in the spotlight. Fitting, then, that in “Sentimental Value” she plays the quiet, levelheaded sister serving as the mediator between impulsive Nora and egotistical Gustav. Lilleaas has become quite adept at doing a lot while seemingly doing very little.

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“In acting school, some of the best characters I did were mute,” she notes. “They couldn’t express language, but they were very expressive. It was freeing to not have a voice. Agnes, she’s present a lot of the time but doesn’t necessarily have that many lines. To me, that’s freedom — the [dialogue] very often comes in the way of that.”

Inga Ibsdotter Lilleaas in “Sentimental Value.”

(Kasper Tuxen)

Lilleaas hadn’t met Trier before her audition, but they instantly bonded over the challenges of raising young kids. And she sparked to the script’s examination of parents and children. Unlike restless Nora, Agnes is married with a son, able to view her deeply flawed dad from the vantage point of both a daughter and mother. Lilleaas shares her character’s sympathy for the inability of different generations to connect.

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“A lot of parents and children’s relationships stop at a point,” she says. “It doesn’t evolve like a romantic relationship, [where] the mindset is to grow together. With families, it’s ‘You’re the child, I’m the parent.’ But you have to grow together and accept each other. And that’s difficult.”

Spend time with Lilleaas and you’ll notice she discusses acting in terms of human behavior rather than technique. In fact, she initially studied psychology. “I’ve always been interested in the [experience] of being alive,” she says. “Tremendous grief is very painful, but you can only experience that if you have great love. I’ve tried the more psychological approach of studying people, but it wasn’t what I wanted. Acting is the perfect medium for me to explore life.”

Other out-of-towners might be disappointed to arrive in sunny Southern California only to be greeted by storm clouds, but Lilleaas is sanguine about the situation. “I could have been at the beach, but it’s fine,” she says, amused, looking out the nearby windows. “I can go to the movies — it’s perfect movie weather.”

Inga Ibsdotter Lilleeaas poses for a portrait at the Twenty Two Hotel in New York City
Inga Ibsdotter Lilleaas.

Inga Ibsdotter Lilleaas. (Evelyn Freja / For The Times)

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Her measured response to both her Hollywood ascension and a rainy forecast speak to her generally unfussed demeanor. During our conversation, Lilleaas’ candor and lack of vanity are striking. How often does a rising star talk about being happy when a filmmaker gives her fewer lines? Or fantasize about a life after acting?

“Some days I’ll be like, ‘I want to give it up. I want to have a small farm,’” she admits. “We lived on a farm and had horses and chickens when I grew up. I miss that. But at the same time, I need to be in an urban environment.”

She gives the matter more thought, sussing out her conflicted feelings. “Maybe as I grow older and have children, I feel this need to go back to something that’s familiar and safe,” she suggests. “I think that’s why I’m searching for small farms [online] — that’s, like, a dream thing. I need some dreams that they’re not reality — it’s a way to escape.”

Lilleaas may have decided against becoming a psychologist, but she’s always interrogating her motivations. This desire for a farm is her latest self-exploration, clarifying for her that she loves her profession but not the superficial trappings that accompany it.

“Ten years ago, this would maybe have been a dream, what’s happening now,” she says, gesturing at her swanky surroundings. “But you realize what you want to focus on and give value. I don’t necessarily want to give this that much value. I appreciate it and everything, but I don’t want to put my heart in it, because I know that it goes up and down and it’s not constant. I put my heart in this movie. Everything that comes after that? My heart can’t be in that.”

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