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Tag: Disney

  • Disney’s acquisition of 21st Century fox leads to employee layoffs: Report

    Disney’s acquisition of 21st Century fox leads to employee layoffs: Report

    MUMBAI: Disney’s acquisition of 21st Century Fox has again led to more employee layoffs. Disney has laid off nearly 60 employees within its media distribution division, according to a Variety report.

    Fox TV Distribution worldwide marketing executive vice president Greg Drebin and 20th Century Fox Home Entertainment worldwide marketing and strategy senior vice president Jennifer Chai are being counted among the affected ones. Drebin was promoted from SVP to EVP of Worldwide Marketing last year.

    A few days after Disney’s $71.3 billion acquisition of Fox’s entertainment and studio assets was completed, 20th Century Fox TV distribution president Mark Kaner was let go. After the closure of the deal, the distribution department was hit by the first round of layoffs.

    Earlier in August, another round of layoffs was executed where a large number of employees have been let go from both sides. Visual effects head  John Kilkenny, feature production executive VP Fred Baron, physical production executive VP Dana Belcastro and post-production executive VP Fred Chandler are among the executives who have received pink slips on the Fox side.

  • Disney to offer Disney+-Hulu-ESPN+ bundle for $12.99 a month

    Disney to offer Disney+-Hulu-ESPN+ bundle for $12.99 a month

    MUMBAI: With the launch of Disney+, Walt Disney Company (Disney) will offer a bundle package of its three streaming services — Disney+, Hulu, and ESPN+ from 12 November. The bundle has been priced at $12.99 a month.

    Disney chief executive officer Bob Iger revealed the plan for the bundle during Disney’s quarterly earnings call with Wall Street analysts. Iger also disclosed that Disney is in talks with Apple, Amazon and Google to distribute its highly awaited Disney Plus and the newly announced bundle on their platforms.

    “The positive response to our direct-to-consumer strategy has been gratifying, and the integration of the businesses we acquired from 21st Century Fox only increases our confidence in our ability to leverage decades of iconic storytelling and the powerful creative engines across the entire company to deliver an extraordinary value proposition to consumers,” Iger said in a press release.

    Disney+ will enter the market with 300 film titles and 7,500 episodes of Disney TV series. Eight of the films will be from the Star Wars franchise, 18 will be Pixar, 70 will be from Disney Animation and four will be Marvel.

  • Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    Star India rev growth offset by incremental rights expense, weakness in ad rev: Disney management

    MUMBAI: The purchase of 21st Century Fox, which was aimed at helping Walt Disney Company's future plans, is causing initial pain to the Bob Iger-led media conglomerate. In its fiscal third quarter result for 2019, Disney missed earnings expectations partly because of the worse-than-expected performance of Fox assets. Star India, the newly acquired premium property of Disney after the completion of the merger, was not able to live up to expectations.

    “We estimate Star generated about $150 million of operating income in the third quarter last year. Star's results this quarter came in well below our expectations and were driven primarily by a meaningful step-up in rights cost for the quadrennial Cricket World Cup and the Indian Premier League as revenue growth was more than offset by the incremental rights expense,” Disney Senior EVP and CFO Christine McCarthy said.

    Despite the initial challenges, Disney CEO Bob Iger highlighted the benefits of the deal such as the addition of Star and Hotstar to the Disney portfolio giving a significant presence in India. He added that it is a huge market with interesting dynamics notably, a rapidly rising middle class with a strong and growing appetite for media, especially sports. He also noted that Hotstar’s broad array of premium sports rights will serve it well over the next five years especially as it expands the service into markets across Southeast Asia.

    “It was the quadrennial Cricket World Cup, of course. They have their Indian Premier League, which is ongoing, but this is once every four years for the World Cup. There were a couple of significant games that were rained out. They have insurance coverage for some of those, but any proceeds would be in future periods. And there was also some weakness in advertising revenue that was related to the local advertising market,” Iger commented on Star’s performance in India.

    Disney also continued to spend big on streaming services such as Disney+, ESPN+, the platforms where it sees its future. Moreover, the firm also took full operational control of streaming platform Hulu, which further affected the balance sheet.

    Disney’s earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter where it was expected $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

  • Star India losses partially offset Disney’s international revenue

    Star India losses partially offset Disney’s international revenue

    MUMBAI: The giant media conglomerate Walt Disney Company could not reach Wall Street’s expectations for the quarter ended 29 June 2019. The company posted weaker than expected earnings per share and revenue in its Q3 results. Star India which now comes under Disney after the merger with 21st Century Fox affected the company’s revenue.

    Earnings per share (EPS) for the quarter decreased 28 per cent to $1.35 from $1.87 in the prior-year quarter while the expectation was $1.74 by the analysts. Total revenue stood at $20.2 billion against the consensus estimate for $21.4 billion.

    "Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” Disney Chairman Bob Iger said. “We remain confident in our ability to successful execute our strategy,” he added.

    Cable Networks revenues for the quarter increased 24 per cent to $4.5 billion and operating income increased 15 per cent to $1.6 billion. The company said higher operating income was due to the consolidation of 21CF businesses (primarily the FX and National Geographic networks) and an increase at ESPN.

    "Results for the quarter also reflected a benefit from the inclusion of the 21CF businesses due to income at the Fox and National Geographic international channels, partially offset by a loss at Star India,” the company said in a release.

    Direct-to-consumer and international revenues for the quarter increased from $827 million to $3,858 million and segment operating loss increased from $168 million to $553 million. The increase in operating loss was due to the consolidation of Hulu, the ramp-up of investment in ESPN+, which was launched in April 2018 and costs associated with the upcoming launch of Disney+.

    Studio Entertainment revenues for the quarter saw a 33 per cent increase to $3.8 billion and segment operating income increased 13 per cent o $792 million. Parks, Experiences and Products revenues for the quarter increased 7 per cent to $6.6 billion and segment operating income increased 4 per cent to $1.7 billion.

    "The incredible popularity of Disney’s brands and franchises positions us well as we launch Disney+, and the addition of original and library content from Fox will only further strengthen our direct-to-consumer offerings,”  Iger said in the earnings release despite the bumpy quarter.

  • Disney-Fox merger sees more layoffs: Report

    Disney-Fox merger sees more layoffs: Report

    MUMBAI: The Walt Disney Studios (Disney) 21st Century Fox (Fox) merger continues to cost jobs with another round of layoffs this week. A large number of employees have been laid off from both sides. Since Disney completed its $71.3 billion acquisition of much of Fox, nearly 250 people have exited so far.

    A report from Variety revealed that the latest round of layoff comes in the backdrop of analysts’ prediction of more than 1000 jobs being eliminated due to the merger. According to the report, the latest episode has mainly impacted the production and visual effects departments.

    Visual effects head  John Kilkenny, feature production executive VP Fred Baron, physical production executive VP Dana Belcastro and post-production executive VP Fred Chandler are among the executives who have received pink slips on the Fox side. Those roles reported to Fox film production vice chairman and president Emma Watts prior to the acquisition. Although Disney has enacted three previous rounds of layoffs mostly impacting Fox staffers, severance packages have been generous.

    Disney also informed its staffs that it would shut Fox Research Library on or before 6 January 2020. Fox Library’s content would be integrated into Disney’s own archives. While the teams at the Walt Disney Archives (founded 1970) and the Imagineering Research Library will be evaluating and handling the collection, it is not clear yet if the library’s archivists will also be laid off.

  • Disney to take charge of Hulu’s scripted originals team

    Disney to take charge of Hulu’s scripted originals team

    MUMBAI: Following the Disney – 21st Century Fox merger, Walt Disney Television is taking charge of the streaming service Hulu’s scripted originals team. Hulu scripted originals senior vice president Craig Erwich will now report to Disney Television Studios and ABC Entertainment head Dana Walden.

    Erwich and his team will not relocate to Disney’s headquarters in Burbank but will remain based out of Hulu's Santa Monica headquarters. But the streamer's unscripted original programming, original film and licensed content teams will continue to report to Hulu CEO Randy Freer.

    "As Hulu drives toward its ambitious subscriber and engagement goals, it is important that we take full advantage of the creative resources and production capabilities of Disney Television Studios, which are among the best in the world," Freer said.

    "Hulu Originals have been widely recognised for their originality, boldness and high level of quality," Walden said. "They are a meaningful part of what has driven the platform’s impressive growth over the past few years. Craig and his team have done excellent work. I am excited to work with Randy in this next phase of Hulu. This new structure will enable Hulu to have access to many of the best creators in the world and programming from all of the content engines inside of Walt Disney Television," the executive added.

    Renowned Hulu originals such as The Handmaid’s Tale, The Act, Catch-22, Castle Rock, The Looming Tower and Pen15 have been launched under Erwich’s leadership who joined the organisation in 2014.

  • Star India’s Gayatri Yadav steps down as president & head – consumer strategy and innovation

    Star India’s Gayatri Yadav steps down as president & head – consumer strategy and innovation

    MUMBAI: Gayatri Yadav, one of Star India’s most important executives, has decided to move on. Indiantelevision.com, through multiple sources, has learnt that September will be Gayatri’s last month with the organisation post which she is likely to pursue her entrepreneurial venture.

    “Yes. This is to confirm Gayatri, who has had a long and fruitful association with Star India, is moving on. We wish her all the best in her new venture,” a Disney spokesperson told Indiantelevision.com

    As president and head consumer strategy and innovation, Gayatri’s mandate was to drive future growth on the back of brand and marketing strategy and big data and analytics.

    Having joined the Star network in 2011 as marketing head, Gayatri has been the force behind some of Star’s most crucial and memorable campaigns and shows like the launch of Satyamev Jayate, the refresh and expansion of Star Sports, marketing launch of its streaming service Hotstar and crafting the Nayi Soch brand plan on Star Plus.

    More recently, under her leadership, Star India was first off the blocks among all major broadcasters to unleash a nation-wide marketing blitzkrieg to announce new channel pricing and packs under TRAI’s new tariff regime.

    Gayatri has over 20 years of experience in marketing across consumer products and media. She started her career at Procter and Gamble in brand management working across categories and brands and later joined General Mills where as chief marketing officer she was responsible for launching Pillsbury and mounting a strong and distinguished portfolio of brands creating various categories in the then budding packaged foods market.

  • Amrita Pandey of Disney joins Junglee Pictures ‏and Times Studios Originals as the CEO

    Amrita Pandey of Disney joins Junglee Pictures ‏and Times Studios Originals as the CEO

    The Times Group has been focussed on building a strong domain in Scripted Content. While the success of Junglee Pictures has already made a significant impact in Feature Film Entertainment, Times Studios Originals had also been set up with a clear intent to develop Digital Video Content of relevance to all streaming platforms.

    The Times Group has now announced the consolidation of these two businesses under unified leadership. They have appointed Amrita Pandey as CEO of both Junglee Pictures & Times Studios Originals.  

    Amrita is an experienced movie industry professional and M&E leader, with a career spanning over 16 years at UTV and The Walt Disney Company. Across her career, she has managed the Studio P&L of the then largest Indian Studio (UTV, then Disney) and has been an integral part of creative and greenlighting decisions. She has set up and run the content distribution business for the company, managed theatrical marketing & distribution and built strong relationships within the creative community.

    She has worked on over 200 movies across languages, including iconic films like Rang De Basanti, Jodhaa Akbar, Barfi, Life in a Metro, Rowdy Rathore, Oye Lucky Lucky Oye, No One Killed Jessica, Kai Po Che, Chennai Express, Kaminey, PK, Haider, ABCD, Dangal and many more. Her team set box office benchmarks not just in India but also in markets like China, North America and Korea.

    Alongside her Studio role, Amrita also led the Content & Channels Distribution role for the South East Asia and India regions for Disney. She was responsible for driving digital and streaming service partnerships, including Disney’s first content deals in the region with Netflix, Amazon, Jio and Hotstar.

  • Star, Sony lead India’s 62% share in regional APAC pay channel revenue in 2018

    Star, Sony lead India’s 62% share in regional APAC pay channel revenue in 2018

    MUMBAI: Media Partners Asia (MPA) has found that India accounted for 62 per cent of regional Asia Pacific pay channel revenues in 2018, led by Star India (now owned by Disney) and Sony. If revenues from Star and Sony India are excluded, Southeast Asia leads, contributing 32 per cent of revenue in 2018, driven by Disney (including Fox), WarnerMedia and BeIN. India would then contribute 18 per cent, led by Disney, Discovery and WarnerMedia, followed by Japan with 16 per cent, led by Disney, Discovery, WarnerMedia and Viacom. Hong Kong & Taiwan and Australia & New Zealand contribute 10 per cent each in this scenario.

    The pay-TV market in Asia Pacific is entering a phase of accelerated consolidation as subscriber growth and spends deteriorates across key territories, according to MPA. The latest edition of MPA’s Pay-TV Networks Channel Database shows that aggregate revenues across 13 major pay-TV networks in Asia Pacific grew by just 1 per cent in 2018 to reach $4.9 billion (after 5 per cent growth in 2017), while combined EBITDA fell by 5 per cent in 2018 to $0.9 billion, approximately the same rate of decline as 2018, ramping up industry pressure. India stands alone as the last major buffer against secular weakness in pay-TV in Asia, although new regulations threaten pay-TV subscription and advertising growth in India too, at least in the near term. The 2018 fall in EBITDA steepens to an 8 per cent drop to $0.5 billion for the measured companies when Star India and Sony India are excluded.

    Commenting on the key findings from MPA’s Pay-TV Networks Channel Database, executive director Vivek Couto said, “Consumer demand for traditional pay-TV has been impacted forever by high-speed broadband, which is driving rapid increases in online video consumption as well as piracy. These trends have intensified downward pressure across Asia’s pay-TV ecosystem, especially in Southeast Asia, led by Singapore and Malaysia, alongside secular shifts in Australia and New Zealand. This will accelerate consolidation as well as major shifts in how channels and content are marketed and sold. Pay-TV’s first big wave of consolidation, led by Disney buying Fox and AT&T buying branded networks from Turner and HBO, will play out with momentum across Asia Pacific over the next year. Future consolidation and rationalization will be defined by global moves and M&A possibilities involving large assets in India. Major players such as Discovery, CBS, Viacom, A+E, Sony and Universal are now competing for the consumer wallet with an increasingly scalable Disney and a newly integrated WarnerMedia within AT&T.”

    Meanwhile, factual & lifestyle channels had the biggest share of revenue by genre, excluding large local networks in India, with 21 per cent in 2018, closely followed by kids channels (21 per cent), then English GE (17 per cent, a material decline from 19 per cent in 2017), sports (15 per cent, up from 14 per cent in 2017), English movies (12 per cent, up from 11 per cent); Asian entertainment (9 per cent, up from 8 per cent), news (3 per cent), and music (2 per cent).

    At the same time, Asia’s relatively young online video market continues to expand rapidly, fueled by advertising scale in particular. Excluding China, where internet video is a highly regulated domestic phenomenon, online video revenues in Asia Pacific grew 40 per cent in 2018 to total $8 billion, according to MPA. As part of this, online video advertising grew 36 per cent to reach more than $5 billion while subscription revenue grew 50 per cent to surpass $2.8 billion. Outside China, Google (YouTube), Facebook, Netflix and Amazon still dominate advertiser and wallet share, although local players are starting to emerge with scale, including Stan in Australia, Hotstar (now owned by Disney) in India, Hulu in Japan and Viu in Hong Kong and Southeast Asia. Pay-TV and telecom operators are also increasingly investing in platforms and technology to aggregate OTT services and provide more choice to their customers along with simpler packages of pay channels with digital rights.

    MPA’s Pay-TV Networks Channel Database includes the following businesses: (1) Star India & Fox Networks, both now part of Disney, as well as Disney’s own branded channels; (2) WarnerMedia networks owned & operated by HBO and Turner; (3) Sony India (including Ten Sports) plus Sony’s ex-India branded networks business; (4) Discovery, including Scripps; (5) BeIN Media; (6) Viacom (excluding an unconsolidated 49 per cent interest in Viacom18 India in 2018); (6) Universal; (7) A+E.

  • Disney formally closes deal with Fox, massive layoffs expected

    Disney formally closes deal with Fox, massive layoffs expected

    MUMBAI: Walt Disney Co (Disney) has finally closed the deal with on its $71 billion acquisition of 21st Century Fox (Fox). In recent months, the acquisition received final approval from antitrust regulators across the globe. This merger will lead to thousands being fired, industry experts as well as several media reports speculate.

    With the deal, Disney is taking over majority of Fox’s assets including 20th Century Fox studio, the FX and National Geographic cable networks, and an additional 30 percent of Hulu. The giant media conglomerate thinks the deal will help it increase its international footprint along with expanding its direct-to-consumer offerings.

    “This is an extraordinary and historic moment for us — one that will create significant long-term value for our company and our shareholders,” Disney CEO Bob Iger said in a press release. “Combining Disney’s and 21st Century Fox’s wealth of creative content and proven talent creates the preeminent global entertainment company, well positioned to lead in an incredibly dynamic and transformative era,” he added.

    Bob Iger promised $2 billion in cost savings which clearly indicates to epic job cuts. While Disney is taking on 15,400 Fox employees, the smaller new Fox Corp will keep about 7,000. The layoffs are expected to come down heavily on domestic market first. “You can anticipate more domestic at the front end, just because of regulatory issues outside of the US,” Disney chief financial officer Christine McCarthy said earlier as quoted by Bloomberg.  The number of cuts could reach up to 4000, maybe even higher than that. Most of the jobs that are expected to be hit by the acquisition are duplicate ones.

    To take on this bet, Disney has to sell 22 regional sports networks in the US and its sports networks in Brazil and Mexico as part of regulatory approvals. The company also agreed to sell its stakes in such networks as Lifetime and History in Europe.

    Although the Fox deal will help Disney in its direct to consumer business, the cost of launching Disney+ is expected to impact the company’s financials next year.  A study from the research firm Ampere Analysis suggested that Comcast, after the acquisition of European pay TV giant Sky, and Walt Disney, after its Fox deal, will dominate global content spending.