Barron's Streetwise Disney's Lost Decade. What's Next?
Jul 25, 2025
Jason Basney, a Citibank analyst specializing in Disney, dives into the company's tumultuous decade of stock performance. He discusses the nostalgic value of Disney's theme parks and how they've played a crucial role in its resilience. The decline of ESPN and its impact on Disney's financials are also explored, alongside the struggles of their streaming services compared to competitors like Netflix. Basney shares insights on Disney's potential for growth and shifts needed within its legacy framework to ensure future success.
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Disney Parks and Nostalgia
- Jack Hough shares a personal theory that Disney parks are most fun when visitors are young or have young kids.
- Changes and rising costs challenge nostalgia but do not necessarily reduce fun for current visitors.
ESPN's Cable Vulnerability Exposed
- ESPN was Disney's cash cow, thriving on bundled cable TV, but cord-cutting exposed its vulnerability.
- The 2015 earnings warning marked a critical shift as traditional TV economics unraveled for Disney.
ESPN Cash Cow Before Cord-Cutting
- Jason Basney recalls how Disney's profit came almost entirely from ESPN bundled in cable for non-sports fans.
- That model masked Disney's true media conglomerate potential until cord-cutting began.