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Disney faces an unknown future as coronavirus hobbles its media empire – CNN

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Over the last century, Disney (DIS) has built a sprawling empire centered around entertaining large crowds in dense spaces. But following one of its best years ever in 2019 — including the record-breaking release of “Avengers: Endgame” and the launch of new Star Wars lands at its theme parks — the pandemic brought Disney to a halt in a matter of days.
Executives like executive chairman Bob Iger and new CEO Bob Chapek are in the midst of dealing with the health and economic crisis. Yet as they deal with the immediate blow to earnings, the longer-term question lingers as to whether Disney’s assets — which have become sudden liabilities because of the virus — could offer a light at the end of the tunnel.

‘It has gone from great to good to bad to worse’

“What everyone’s worrying about is that we don’t know when things are going to get back to normal. We also don’t know whether behaviors change in the future,” Michael Nathanson, a media analyst and founding partner at MoffettNathanson, told CNN Business. “Will people be reluctant to go to parks? Will people want to sit in the theater next to strangers for fear of catching the virus? That’s what the market is wrestling with when it comes to Disney.”
The pandemic has hit Disney particularly hard. Its parks and resorts have closed around the world, major films like “Mulan” and “Black Widow” are delayed, and one of its biggest media networks, ESPN, is scrambling to fill its airtime due to a lack of sports.
This has led Disney to furlough thousands of employees, led Standard & Poors to downgrade the company’s credit rating, and led its stock to drop 27% year to date. Disney did not have a comment on this story.
The company will report its earnings after the bell Tuesday, and investors are eager to learn just how deeply the pandemic has hurt Disney’s business.
“With the businesses unable to operate, Disney is just going to get decimated in 2020 on free cash flow and profitability,” Nathanson added. “It has gone from great to good to bad to worse.”
However, Disney is still Disney — a company with a beloved brand and an array of franchises that remain the envy of the industry. As consumers grapple with the psychological effects of being locked up for so long, will there be pent-up demand in the long-term for Disney’s crowd-based entertainment experiences?
Or will consumer habits shift for good?

‘No one is suddenly bored of Disney’

“The ability for Disney to thrive in so many applications — TV, comics, film, parks, books, on-ice shows, video games — is encouraging,” Matthew Ball, a former Amazon (AMZN) Studios executive, told CNN Business. “Most companies don’t have the intellectual property, let alone the culture or skill set, that Disney does when it comes to finding out how to delight customers in new ways and through new products in a post-COVID world.”
Ball added that “no one is suddenly bored of Disney” and that before coronavirus, “no media company was more beloved.”
Suzanne Scott, an assistant professor at the University of Texas’ Moody College of Communication, echoed this point, telling CNN Business that Disney fans are “incredibly loyal to the brand.” She doesn’t believe that this crisis will change that.
“We associate Disney with family, which is at the forefront of everyone’s mind right now,” she said. Scott emphasized that people will be craving events and communal experiences once it is safe to collectively gather again.”
Robert Niles, editor of ThemeParkInsider.com, believes that Disney’s parks and resorts will face the greatest challenges in terms of reopening, and that those challenges probably won’t be resolved any time soon. However, he added that Disney has spent years and billions to position itself as “a lifestyle brand — not just an entertainment company or a vacation destination.”
That bond with consumers gives Disney “an enormous head start relative to its competition when stay-at-home orders lift,” he said.
“Millions of Disney fans are sitting at home right now, watching Disney+, wearing Disney-branded clothes, reading Disney books and listening to Disney music,” Niles told CNN Business. “Even though people have had to stay away from theaters and theme parks, they’ve never had to stay away from Disney.”
While 2020 looks destined to be a disaster for Disney, there is one bright spot for the company: Disney+.
In just five months, the company’s nascent streaming service racked up 50 million paid subscribers globally, a number it originally projected would take nearly four years to hit. Even Reed Hastings, Netflix’s CEO, praised the launch of Disney+ during his own company’s recent earnings call, saying “I’ve never seen such a good execution of the incumbent learning the new way and mastering it.”
Trip Miller, a Disney investor and managing partner at hedge fund Gullane Capital partners, believes Disney+ is vital to the company right now. And that’s not just because it’s Disney’s future. He believes the streaming platform keeps the company in the hearts, minds and living rooms of consumers.
“If there’s one silver lining for Disney from this terrible crisis, it’s that it has pushed more people to consume the company’s content even faster than anyone expected,” he said. “Can you imagine if this was two years ago and they didn’t have Disney+?”

Into the unknown

While Disney+ appears to be well ahead of schedule, with so many parts of the company idled or hobbled, it’s not enough to compensate for the setbacks.
Ball noted that Disney is an “incredibly diversified media company” and that’s usually “an advantage in times of crisis, as it affords stability and limits overall exposure.”
“But COVID-19 is hitting nearly every element of Disney,” he added. “The only exception is really its streaming services, Hulu and Disney+, but neither is profitable yet.”
Given its strong stable of pop-culture properties, Disney has the branding, assets and consumer loyalty to rebound from the coronavirus. But no one knows how long recovery will take, and what permanent financial damage is being done to Disney in the process.
So for the first time in decades, the company is heading into an unknown future — one that no amount of Disney magic can fix right now.
“If things came back to normal, Disney’s rise would likely be equal to its fall,” Nathanson said. “But people just don’t know when that’s coming.”

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What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’

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2 days ago

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September 13, 2024

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Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.

NEW MOVIES TO STREAM SEPT. 9-15

— Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.

— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.

— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”

— AP Film Writer Lindsey Bahr

NEW MUSIC TO STREAM SEPT. 9-15

— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”

— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.

— AP Music Writer Maria Sherman

NEW SHOWS TO STREAM SEPT. 9-15

— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.

— Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.

— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.

— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.

— Alicia Rancilio

NEW VIDEO GAMES TO PLAY

— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.

— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.

— Lou Kesten

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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3 weeks ago

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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3 weeks ago

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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