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3 things we learned from Disney’s latest earnings report
More than 6 million people subscribed to Disney+ in the past three months, helping Walt Disney Co. post a surprise profit in its on-demand video streaming division, executives with the entertainment giant said Tuesday.
The earnings boost comes after a rough 18 months at the House of Mouse. In early 2023, CEO Bob Iger announced that 7,000 jobs would be cut across the company as part of a broader plan to slash costs and stabilize the company financially.
At the same time, Disney found itself in a bitter political feud with Florida Gov. Ron DeSantis over who should govern a slice of land in Orlando that the company had staked out for its expanding footprint.
With those challenges now in the past, here are three things we learned from Disney’s second-quarter earnings report.
Disney turned a profit on streaming for the first time
The company’s direct-to-consumer business, which includes Disney+ and Hulu, posted $47 million in profit for the quarter, a sharp turnaround from its $587 million loss in the year-ago period. Revenue also showed solid growth, rising 13% to $5.64 billion.
“The big surprise of the day came on the streaming front, which finally managed to bring profits — way ahead of predictions — amid Hollywood’s massive strike period,” said Thomas Monteiro, senior analyst at Investing.com. “This indicates that perhaps the more global, low-production-cost Netflix-like model is probably the way to go in an operation that needs to rethink its growth expectations as a whole.”
As of March, Disney+ subscriptions were up 6% to 117 million, while Hulu subscriptions grew 1% to 50 million.
“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,” CEO Bob Iger said in a statement.
Entertainment and media giants like Comcast-owned NBCUniversal, Warner Bros. Discovery and Paramount Global (the parent company of CBS News) have struggled to turn a profit on streaming given the hefty costs of producing content. For Disney, the challenge now will be to sustain momentum in streaming, with invigorating the business while containing costs a key priority for Iger since he re-took the helm of Disney in 2022.
Expect to see more sports content on Disney+
The 2024 Women’s NCAA basketball tournament was a viewership bonanza for ESPN, Disney officials said Tuesday. still nearly 19 million viewers watching South Carolina battle Iowa in championship finale wasn’t enough juice to boost the sports programming network into the black this quarter.
ESPN’s profit fell 9% in the second quarter to $780 million, compared to $858 million a year ago. Revenue grew 4% to $3.8 billion. Disney said the loss stems in part from the network spending more money on production when it aired one additional college football championship game.
In an effort to boost ESPN’s revenue, Disney executives said Tuesday that a sample version of its content from ESPN+ will be folded into what Disney+ subscribers can see starting later this year. Short snippets of live sports events and limited sports news will be used to appeal to the casual sports fan, the company said.
The theme parks are chugging along
With the pandemic in the rear-view mirror, Disney’s global theme parks are flying high. Revenue at its U.S. parks — Walt Disney World in Orlando and Disneyland in Anaheim, California — rose 7%, while the overseas parks reported a 29% increase.
Disney executives acknowledged that the company has been wrestling with higher costs at its theme parks during the quarter due to inflation. In the U.S., that has been offset partly by increased guest spending due to higher ticket prices and hotel room rates.
Overseas, Hong Kong Disneyland benefited from the opening of World of Frozen, a section of the park that includes rides based on the popular “Frozen” movies, in November.
—The Associated Press contributed to this report.
CBS News
Osprey ferrying White House staff in New York grounded after witness reports flames
NEW YORK — An Osprey being used to ferry White House staff and government officials from an event in New York on Monday was grounded due to a safety concern, with one witness reporting flames under the right engine.
The staff and officials were removed from the aircraft, part of the Marine Corps HMX-1 presidential helicopter fleet, and transferred to a second Osprey to continue their trip accompanying President Joe Biden at a “Friendsgiving” event with members of the U.S. Coast Guard in Staten Island.
The issue caused only a minor delay for Biden’s return to Washington on Monday evening.
The incident occurred the same day lawmakers sent a letter to Defense Secretary Lloyd Austin asking him to re-ground the military’s entire fleet of V-22 Ospreys until solutions can be put in place to address safety and design issues identified by The Associated Press in its recent in-depth investigation of the aircraft’s accident record.
The Marine Corps did not immediately respond to a request for comment on the New York incident. A journalist traveling with the president reported seeing a fire under the right engine shortly before staff were notified the Osprey would be grounded.
It’s not the first time White House staff or reporters have had to be removed from an Osprey during a trip due to safety concerns. In November 2023 an Osprey ferrying White House reporters and staff returned to the ground shortly after takeoff after four loud “pops” were heard and smoke was seen.
In the letter sent Monday to Austin, Sens. Elizabeth Warren and Ed Markey, and Rep. Richard Neal, all Democrats from Massachusetts, said that “given the current concerns about the safety of the V-22, the aircraft should be grounded, and should not be deployed again until the platform’s significant deficiencies are fully addressed.”
The Osprey, which flies like both a helicopter and an airplane, has been in more than 21 major accidents, many of which can be tied back to choices made in its design, the AP found.
The whole fleet was grounded for three months this year following a deadly crash in Japan in November 2023 that killed eight service members, including one from Massachusetts.
Ospreys, which are operated by the Navy, Air Force and Marine Corps and used in the presidential fleet, have now returned to flight operations, with some restrictions.
Osprey pilots have told the AP they do not want to see the aircraft grounded, despite safety concerns, because of its unique capabilities. Program officials have said they are working on fixes to improve the V-22’s safety and reliability.
The Pentagon did not immediately respond to a request for comment on the letter.
The lawmakers also cited the AP’s reporting that pilots are having to push the V-22’s “interim power” feature to be able to land safely — but are advised against it because it can wear down parts. Interim power was a factor in the most recent accident in October when a Japanese self-defense forces Osprey violently tilted and struck the ground on takeoff. An investigation determined the pilots were to blame for not turning on the interim power during takeoff.
“The reality for pilots is that they have to push the aircraft to its limits to stay safe,” the lawmakers wrote.
CBS News
Sonar image was not Amelia Earhart’s long-lost plane, but exploration team says search continues: “The plot thickens”
A sonar image suspected of showing the remains of the plane of Amelia Earhart, the famed American aviator who disappeared over the Pacific in 1937, has turned out to be a rock formation.
Deep Sea Vision (DSV), a South Carolina-based firm, released the blurry image in January captured by an unmanned submersible of what it said may be Earhart’s plane on the seafloor.
Not so, the company said in an update on Instagram this month.
“After 11 months the waiting has finally ended and unfortunately our target was not Amelia’s Electra 10E (just a natural rock formation),” Deep Sea Vision said.
“As we speak DSV continues to search,” it said. “The plot thickens with still no evidence of her disappearance ever found.”
The image was taken by DSV during an extensive search in an area of the Pacific to the west of Earhart’s planned destination, remote Howland Island.
Tony Romeo, a pilot and former U.S. Air Force intelligence officer, told the Wall Street Journal earlier this year that he funded the $11 million search by selling off his commercial real estate properties.
“This is maybe the most exciting thing I’ll ever do in my life,” he told the Journal. “I feel like a 10-year-old going on a treasure hunt.”
Earhart went missing while on a pioneering round-the-world flight with navigator Fred Noonan.
Her disappearance is one of the most tantalizing mysteries in aviation lore, fascinating historians for decades and spawning books, movies and theories galore.
The prevailing belief is that Earhart, 39, and Noonan, 44, ran out of fuel and ditched their twin-engine Lockheed Electra in the Pacific near Howland Island while on one of the final legs of their epic journey.
Earhart, who won fame in 1932 as the first woman to fly solo across the Atlantic, took off on May 20, 1937 from Oakland, California, hoping to become the first woman to fly around the world.
Earhart and navigator Fred Noonan disappeared on July 2, 1937, while flying over the Pacific Ocean during Earhart’s attempt to become the first female aviator to circle the globe. They vanished without a trace, spurring the largest and most expensive search and rescue effort by the U.S. Navy and Coast Guard in American history. Earhart and Noonan were declared dead two years later.
Multiple deep-sea searches using high-tech equipment have tried but failed over the years to find Earhart’s plane.
There other theories about where Earhart may have vanished. Ric Gillespie, who has researched Earhart’s doomed flight for decades, told CBS News in 2018 that he had proof Earhart crash-landed on Gardner Island — about 350 nautical miles from Howland Island — and that she called for help for nearly a week before her plane was swept out to sea.
Gillespie’s organization, the International Group for Historic Aircraft Recovery, has also claimed that it found forensic evidence, including bones on the island, that were likely Earhart’s.
contributed to this report.
CBS News
World’s oldest man John Tinniswood dies in England at the age of 112
London — The world’s oldest man, John Tinniswood, has died at the age of 112 at the care home where he lived in Southport, northwest England, Guinness World Records said Tuesday, quoting his family. Tinniswood was born in Liverpool on Aug. 26, 1912, and died on Monday.
He became the world’s oldest man in April following the death of 114-year-old Venezuelan Juan Vicente Perez.
“His last day was surrounded by music and love,” the family said in a statement, also thanking “all those who cared for him over the years.”
Born the same year the Titanic sank and living through both World Wars, Tinniswood told Guinness World Records that the secret to his longevity was “pure luck.”
“You either live long or you live short, and you can’t do much about it,” he said.
He nonetheless advised moderation in all things to stay healthy.
“If you drink too much or you eat too much or you walk too much, if you do too much of anything, you’re going to suffer eventually,” he added.
During World War Two, Tinniswood held an administrative role in the Royal Army Pay Corps, going on to work in accounts for oil giants Shell and BP.
He was a life-long supporter of Liverpool soccer club, and ate fish and chips every Friday. Staff at his care home in Southport described Tinniswood as a “big chatterbox.”
The world’s oldest living woman currently is Japan’s Tomiko Itooka, who is 116.