ACC303 Contemporary Issues: Disney's Share Price & ESPN Impact

This case study examines the impact of ESPN on Disney's share prices. It summarizes news articles related to ESPN's performance and analyzes the subsequent effect on Disney's stock. The study highlights how declining viewership and programming issues at ESPN led to a reduction in Disney's income and affected its share price. It further explores the company's response, including strategies to improve streaming, the launch of ESPN+, and a focus on content renewal. The analysis concludes that while ESPN's challenges significantly impacted Disney, the company's strategic responses helped mitigate losses, demonstrating the importance of adaptive planning in capital market dynamics. References to academic articles and financial data sources are included to support the analysis.

C A S E S T U D Y O F D I S N E Y
Capital Market Research

Introduction
The provided presentation aims to evaluate
impact of Disney due to ESPN on its share
prices by considering following factors:
Summary of articles
Impact on share prices
Response of company towards the news

News Article
The main reason behind the company’s
income and growth reduction was ESPN
Placement of faults on the manufacturing and
programming
Steady and constant loss of subscribers

Share price before news Share price after news
Impact on share prices
(Source: Yahoo finance, 2019)

Response of company towards the news
The company responded the issue by placing
several strategies such as:
Better streaming of channels to attract
subscribers
Declaration by company of its new service
named ESPN +
Focusing on best content
Top notch renewals while including live
internet TV steaming process

Conclusion
By considered the above analysis it can be
noticed that the share prices of Disney was
significantly impacted by failure of single
segment that is ESPN this provide learning
that company suffered from large amount of
losses due to ESPN, but it properly managed
and compensated these losses by placing
good strategies and conducting better
planning.

References
do Patrocínio, R.F., de Almeida Souza, J.L., Santos, C.T.O. and Martins, K.S.,
2018. The vision of the Disney World: an experience marketing study at The
Walt Disney Company. Archives of Business Research, 6(9).
Edwards, M., 2016. Competitive Advantage: The Actions ESPN Must Take in
Order to Maintain a Leadership Position in the Wake of Cable
Unbundling. Sports. Law Review, 46, p.197.
Martin, T.G., McNary, E., Suh, Y.I. and Gregg, E.A., 2018. A content analysis of
pictorial content in entertainment and sports programming networks (ESPN):
The magazine's body issue. Journal of Physical Education and Sports
Management, 9(1), pp.1-9
Yahoo finance, 2019. The share price of The Walt Disney Company (online).
Available through <https://finance.yahoo.com/quote/DIS/chart? > [Assessed on
22 January 2019].
Darren, H, 2016. Disney's ESPN Subscriber Situation Is A Cause For
Concern(online).Available through
<https://www.forbes.com/sites/darrenheitner/2016/11/11/disneys-espn-
subscriber-situation-is-a-cause-for-concern/#6f70832d6e64.> [Assessed on
22january 2019]