Home / FINANCE / Media researcher Richard Greenfield explains because he’s so bearish on Disney stock

Media researcher Richard Greenfield explains because he’s so bearish on Disney stock

Rich Greenfield, BTIG media and tech analyst, is intensely endangered about ESPN’s future. He points out that ESPN doesn’t possess most of a calm other than SportsCenter. Greenfield has a “sell” recommendation on a Disney and has one of a lowest cost targets for a batch during $90. Following is a twin of a video.

Sara Silverstein:  And vocalization of ESPN. we always looked during that as how they’re going to reason on to a wire package — to a normal bundle. And it feels like it’s apropos a genuine diseased indicate for Disney. 

Richard Greenfield: Look we listen to like an financier discussion call, like an gain call for Disney, and substantially each doubt is on ESPN. we mean, people are indeed apologizing like, “I have another ESPN question.” Because it’s a doubt that only doesn’t go away. And a problem is that ESPN doesn’t possess a content. You know, you’re going to fire this video, Business Insider’s going to possess this content. You indeed possess and control it, and can monetize it however we wish to. The problem with ESPN is that they’re are dweller of content. They indeed don’t … a biggest calm they possess indeed themselves is SportsCenter, that is unequivocally been devalued in a universe where, we know, spin on Twitter and you’ve got sports scores entrance out of your ears. So a calm that ESPN has, a things that’s unequivocally high form — they rent. And a problem with renting is all of these people with low pockets that we were only articulate about what stops — it’s not so crazy to consider of an Apple or an Amazon holding over Monday Night Football in 2022.

Silverstein:  Absolutely not, it creates ideal sense.

Greenfield: If we wish to take a highest-profile — if we wish to destabilize a whole ecosystem, literally break a normal media ecosystem. The best approach to do it would be to get football. Because football, to your indicate on ESPN, sports is what’s holding a whole linear gold together. You conflict sports and this whole thing shatters. And so we don’t consider it’s crazy during all. And so ESPN has descending subscribers, though remember they’ve sealed in their costs. So they compensate a NFL some-more each singular year, they compensate a NBA some-more each year, they compensate all these sports write — keep escalating. They’ve got reduce viewership since reduction people are examination linear TV, generally things like SportsCenter. And they’ve got fewer subscribers, since wire subscribers, substantially a lot of a people as we demeanour around your office, given their demographics, are substantially doubtful to be subscribers. You know, we consider a younger era is only not signing adult for cable. And even, even comparison generations are looking during it going, what am we profitable $120 a year for? When, we know, we mean, like what’s to watch right now on network television? You know, it’s  the summer you’re substantially examination Netflix or Amazon. Like because are we subscribing to linear television? And we consider it’s heading to an acceleration of cord-cutting that ESPN has no answer for.

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