Disney competes with other media conglomerates like Viacom, News Corp, CBS and Time Warner in the media and entertainment business. The company’s operations are diversified across a variety of product lines. Below, we take a look at the relative value of the company’s top four value drivers.
1) ESPN – represents 28% of Disney’s stock value
ESPN is the worldwide leader in sports programming and arguably the most popular sports channel in the world. The channel is almost indispensable to U.S. pay-TV households and has rights to a host of major sporting events like NFL, NBA, and the FIFA World Cup. The channel generates revenue via subscription fees and advertising.
2) Disney Channel, A&E & Others – 21%
This business includes other channels owned by the company (excluding ESPN) including the Disney Channel, A&E, History Channel and Lifetime, which make money through both subscription and advertisement.
