ESPN May Bring Disney Less Profit
(News | Source: International Herald Tribune)
Walt Disney Company’s ESPN Network my produce smaller profit in this coming year. Professional football, baseball, basketball and racing contracts are up for renewal and expected to raise expenses by $1.02 billion a year. ESPN was the source of 46 percent of Disney’s operating earnings last year.
“Disney is entering a period of slower growth,” UBS Securities analyst, Michael Morris said. “ESPN is at the center of that equation.”
Disney expects ESPN to increase revenue by expanding advertising online and on ESPN2 and providing interactive technology to cell phones and other digital devices.
“We are getting tremendous value for these investments,” said George Bodenheimer, president of ESPN and co-chairman of Disney Media Networks. “Our ability to maximize these agreements has never been greater.”
