Disney is celebrating a successful third quarter with significant news for its streaming platforms. Disney+, Hulu and ESPN+ have become profitable for the first time.
Disney’s earnings jumped significantly, aided by the success of “Inside Out 2”, which is now the highest-grossing animated film of all time.
The popularity of the sequel led to a surge in Disney+ subscriptions. Over 1 million new subscribers tuned in to watch the original “Inside Out.” The 2015 film garnered more than 100 million views on Disney+ following the release of “Inside Out 2.”
Revenue from Disney’s streaming services increased by 15%. The company had not expected this sector to become profitable until the fourth quarter, making the third quarter earnings report a pleasant surprise.
Looking ahead, Disney plans to further capitalize on its streaming services, which means consumers can expect to pay more. Disney is set to raise subscription prices across all platforms this fall, with most plans increasing by $1 to $2 per month. Since its launch in 2019, Disney+ has seen its subscription price double due to gradual price hikes.
Hacker group claims it leaked Disney’s internal info
A hacker group named NullBulge claims to have stolen and leaked 1.2 terabytes of Disney’s internal Slack communications. The data includes discussions about ad campaigns, studio technology, unreleased projects, interview candidates, login credentials and images of employees’ dogs, dating back to 2019.
NullBulge — which targets companies for their handling of artists’ contracts, use of AI and consumer practices — said they leaked the data to protest Disney’s actions in these areas. The group claims they received help from a Disney insider, but this remains unconfirmed. Disney has said it is investigating the matter.
The leaked information was initially posted on BreachForums but has since spread to mirror sites. Security experts, such as Roei Sherman of Mitiga Security, warn that breaches like this are becoming more common, particularly with cloud and SaaS platforms. Sherman noted that the leaked data appears legitimate and includes URLs, employee conversations, credentials and other content.
A spokesperson for NullBulge criticized Disney for how it handles artists’ contracts, its approach to AI and its “blatant disregard for the consumer.” The group’s website describes its mission to protect artists’ rights and ensure fair compensation.
Streaming looking more like cable with price hikes, bundling
Streaming services were once seen as the modern alternative to cable. The services were cheaper, ad-free and tailored to specific interests for viewers looking to cut the cord.
But with rising prices and streamers putting their attention to ad-supported tiers, it is getting more difficult to tell the difference between streaming and cable. Some even began calling the streaming industry “Cable 2.0.”
According to research from the online platform Bango, the average American has 4.5 total subscriptions, including audio, fitness and news apps, as well as these streaming services.
Subscriptions to these streaming platforms cost the average customer in the U.S. $1,000 per year. Meanwhile, the Financial Times reported the average cable plan costs around $83 per month, or $996 a year.
Price hikes for streaming seem to be just part of the process nowadays. NBC Universal recently announced a price hike for its Peacock service will go into effect just before this summer’s Paris Olympics.
Analysts at UBS Securities said Netflix users should prepare for another price hike this year following one last October.
Bloomberg reported Warner Bros. Discovery is planning to hike the price of its Max platform soon, as well.
As more media companies look to make a profit on their streaming services — and battle the reigning king of streaming, Netflix — they are turning to each other for help.
Disney and Warner Bros. Discovery announced their Disney+, Hulu and Max streaming services will soon be offered in one bundle.
All the three streamers’ offerings — including content from HBO, HGTV, ABC, CNN and more — will be packaged together.
Sounds like a cable TV package, doesn’t it?
The bundle will be available in the U.S. starting in the summer, though the streamers have not shared a price yet. There will be versions with ads and without.
Biden says US will not supply weapons to Israel for Rafah operation
President Joe Biden says the U.S. will not supply certain weapons to Israel should the country launch its major offensive on Rafah. And Democrats and Republicans come together to save the speaker of the House from being voted out. These stories and more highlight The Morning Rundown for Thursday, May 9, 2024.
Bidensays US will not supply weapons to Israel for Rafah operation
President Joe Biden has warned the United States will not supply Israel with certain weapons and artillery shells if the Israeli army proceeds with its major military operation in Rafah. Biden made these comments during an interview with CNN on Wednesday, May 8, following the U.S.’ decision to withhold a shipment of thousands of bombs to Israel due to growing differences over Israel’s tactics in Gaza.
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“Civilians have been killed in Gaza as a consequence of those bombs and other ways in which they go after population centers,” Biden said. “I’ve made it clear that if they go into Rafah, they haven’t gone on Rafah yet, if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, a deal with the city, deal with that problem.”
Despite the warning, Biden affirmed that the U.S. remains committed to Israel’s security, particularly in terms of supporting the Iron Dome defense system and Israel’s ability to defend itself against future attacks.
Though the Israeli military moved into Rafah starting on Tuesday, May 7, both the White House and Israel have described it as a limited operation. Biden told CNN that Israel’s current actions in Rafah have not crossed his red line, but he has cautioned Israeli Prime Minister Benjamin Netanyahu that the U.S. will not support the operation if it extends into populated areas.
Biden administration expected to propose change in asylum system
Reports indicate the proposed rule would enable immigration officials to quickly deport migrants who illegally crossed the border and are ineligible for asylum. Those targeted would be individuals deemed a national security risk or a danger to public safety.
The new rule could see migrants barred from asylum and deported within days, or even hours, of their arrival — a process that currently can take years. The rule would still require finalization at a later date.
Lawyer: Airman killed by Florida deputy who burst into wrong apartment
Civil rights attorney Ben Crump said Senior Airman Roger Fortson was on a FaceTime call with a woman when deputies, responding to a disturbance at the Okaloosa County apartment complex, forced entry into his unit.
According to Crump, and based on the woman’s account, a deputy shot Fortson six times upon seeing him armed with a gun. Crump said Forston legally owned the weapon. Fortson later died at a hospital.
In a statement, the Okaloosa County Sheriff’s Office said the deputy acted in self-defense after encountering an armed man. Authorities have not yet commented on Crump’s claims, but the sheriff posted on Facebook asking the community for patience as they work to understand the facts of the case.
Crump is calling for transparency in the investigation and asking authorities to release the body cam video to the airman’s family.
The deputy involved has been placed on administrative leave.
House Speaker Mike Johnson survives attempt to oust him
Eleven Republicans voted against tabling Greene’s resolution. Greene expressed no surprise at the outcome but did not indicate whether she would attempt to remove Johnson again.
Johnson — joking with reporters after the vote — referred to the event as “just another Wednesday on Capitol Hill.” He thanked his colleagues for their support and described Greene’s efforts as misguided.
In remarks to the press, Johnson stated, “Hopefully this is the end of the personality politics and the frivolous character assassination that has defined the 118th Congress. It’s regrettable. It’s not who we are as Americans, and we’re better than this. We need to get beyond it.”
Disney, Warner Bros. Discovery to offer bundled streaming service
Disney and Warner Bros. Discovery are collaborating once again, this time to offer a new bundle that includes their Disney Plus, Hulu and Max streaming services.
The bundle will be available for purchase on the platforms’ websites and will be offered in versions with and without ads. Set to launch this summer, the pricing details have yet to be announced.
Olympic torch arrives in France ahead of Paris Summer Games
With just over two months until the Paris Summer Games, the Olympic torch has arrived in France, greeted with significant celebration. After being lit in Greece 11 days earlier, the flame reached the French port city of Marseille on Wednesday, May 8.
There, two Olympians assisted in bringing it ashore before popular French rapper Jul lit the Olympic cauldron. Local officials estimate that a crowd of about 225,000 people attended the event, which was secured by approximately 7,000 law enforcement officers.
Iger expressed gratitude to the shareholders for their confidence in the board.
“With the distracting proxy contest now behind us, we’re eager to focus 100% of our attention on our most important priorities: growth and value creation for our shareholders and creative excellence for our consumers,” Iger said.
Although unsuccessful, Peltz’s firm, Trian Partners, stated it is proud of the campaign’s role in refocusing Disney’s priorities, highlighting a roughly 50 percent increase in Disney stock over the past six months.
“We are proud of the impact we have had in refocusing this Company on value creation and good governance,” Trian said in a statement.
Shareholders overwhelmingly supported Iger, who received 94% of the votes, while Disney director Maria Elena Lagomasino, challenged by Trian, secured 63%. Peltz garnered 31% of the votes, according to sources.
Biden to speak with Netanyahu days after Israeli strike killed aid workers
Days after an Israeli strike killed seven aid workers, President Joe Biden is expected to speak with Israeli Prime Minister Benjamin Netanyahu. And rescuers in Taiwan search for dozens who remain missing while trying to reach hundreds still stranded after the devastating earthquake. These stories and more highlight The Morning Rundown for Thursday, April 4, 2024.
Biden to speak with Netanyahu days after Israeli strike killed aid workers
Senior U.S. officials indicate Biden will voice his concerns over Israel’s actions in its conflict with Hamas and emphasize the need for better protection of humanitarian aid workers and civilians.
Netanyahu has acknowledged the airstrike was unintentional and committed to a swift, transparent investigation, while World Central Kitchen demands an independent international probe, deeming it a targeted attack.
White House National Security spokesman John Kirby stated it’s premature to discuss any potential repercussions for Israel but reaffirmed U.S. support for Israel’s right to defend itself against Hamas.
Rescuers trying to reach hundreds after Taiwan earthquake
Rescue teams in Taiwan are searching for dozens still missing after a deadly 7.4 magnitude earthquake killed nine people on the island. The National Fire Agency reports more than 600 people are stranded in mountainous and hiking areas but remain in contact with rescuers.
Officials expect aftershocks to continue through the end of the week.
Rail services have resumed, and major businesses, including the Taiwan Semiconductor Manufacturing Company, a global leader in computer chip production, are returning to operation.
This quake was the strongest to hit Taiwan in 25 years.
Judge rejects Trump’s delay of hush money trial over immunity claim
A New York judge Wednesday, April 3, denied former President Donald Trump’s request to delay his trial over a hush money payment until the U.S. Supreme Court rules on April 25 on his claim of presidential immunity, saying Trump waited too long to bring up this argument.
Trump’s trial, concerning a $130,000 payment to adult film star Stormy Daniels before the 2016 election, is scheduled to start April 15. Manhattan Judge Juan Merchan described the delay request as “untimely,” stating Trump’s legal team had sufficient time previously to address the immunity issue.
In this case, Trump is charged with 34 felony counts of falsifying business records. He is also facing several other criminal cases across the country, including charges related to mishandling classified documents and attempting to interfere in elections, with pending trials in Florida, Washington, D.C., and Georgia. Trump has pleaded not guilty to all charges.
Disney wins boardroom battle with activist investor
Shareholders sided with Iger, reelecting the company’s full board and rejecting seats for Peltz and his associates.
Iger expressed gratitude to the shareholders for their confidence in the board and emphasized that with the election concluded, Disney can now concentrate on “growth and value creation for shareholders and creative excellence for customers.”
Although unsuccessful, Peltz’s firm, Trian Partners, stated it is proud of the campaign’s role in refocusing Disney’s priorities, highlighting a roughly 50 percent increase in Disney stock over the past six months.
Guinness World Records says world’s oldest man passes away at 114 years old
Guinness World Records announced Wednesday, April 3, that the world’s oldest man, Juan Vicente Perez Mora from Venezuela, has died just days before his 115th birthday.
Perez, who held the record for over two years, credited his longevity to “working hard, resting on holidays, going to bed early, drinking a glass of aguardiente every day, and loving God.”
Born in 1909, Perez was married for 60 years and had a large family, including 11 children, 42 grandchildren, 18 great-grandchildren, and 12 great-great-grandchildren. Following his passing, efforts are now underway to identify and verify the next world’s oldest living man.
Fox, AEG launching new postseason college basketball tournament
With March Madness breaking rating records, Fox and promoter AEG Worldwide are introducing the College Basketball Crown, a new 16-team postseason tournament for teams that didn’t make the NCAA Tournament.
Set to debut next year from March 31 to April 6 in Las Vegas, the tournament will include teams from the Big Ten, Big 12, and Big East conferences, along with additional teams selected by a committee.
The ‘little guy’ may have the biggest say in Disney’s $70 million proxy fight
The fierce boardroom battle over Disney’s direction heads to a vote during the week of March 31. It is expected to be the most expensive proxy fight in history, with all sides dropping a collective $70 million to influence shareholder votes.
Disney is doing the bulk of the spending to push for its chosen board of directors at an estimated $40 million, while Peltz’s Trian Partners expects to drop $25 million to Blackwells Capital’s $6 million. The latter two are separately challenging the company line.
Peltz is no stranger to forcing expensive fights over board seats. He holds the current record for the most expensive proxy fight with Procter & Gamble in 2017. That fight cost $60 million and is one of the closest proxy battles in corporate history. After a near-tie and multiple recounts, Peltz reportedly lost the vote but P&G conceded in giving him a seat on the board anyway.
Now setting his sights on Disney for a second time – he first angled for a board seat one year ago before dropping the fight – Peltz and Trian Partners argue, “Disney has lost its way over the past decade. Shareholders have suffered greatly, losing tens of billions of dollars in value.”
“We’re here to make that stock go up for the right reasons,” Peltz said in a video aimed at Disney shareholders. “We’re here to get this company back to earning money, generating cash flow, fixing the streaming business. Here’s a company that has disappointed and underperformed the S&P for one year, three years, five years, 10 years, forever. That’s how long they’ve been disappointing shareholders.”
Over the past five years, the S&P 500 index is up more than 81% while Disney is up 5.65% as of Monday morning, April 1.
One of Peltz’s biggest gripes is continued losses in Disney’s streaming business. In a 133-page white paper, he suggests, among other things, combining Hulu with Disney+.
Despite the underperforming stock track record over the past several years, Disney argues that under returning CEO Bob Iger, the company is in the middle of righting the ship.
In 2024, Disney’s stock has far outpaced the S&P 500 benchmark, rising 34% compared to S&P’s 10%. The company is also going after Peltz’s track record in a series of attacks meant to sway shareholders.
“Nelson Peltz has a long history of attacking companies to the ultimate detriment of shareholder value. His quest also seems more about vanity than a belief in Disney,” Disney said in a video to shareholders.
Part of what is making this fight over board seats so expensive, possibly record-setting, is that around 40% of Disney’s shareholders are regular people, not big funds. The New York Times said for the average public company, individuals usually own around 15%.
It’s costly to reach a large number of small investors. In this proxy fight, it could be Average Jane and Joe who tip the scales at Wednesday’s annual shareholders meeting. At stake are the futures of Disney+, Hulu, ESPN, ABC, movie studios like Marvel, and of course, the happiest places on Earth.
Trump wins Iowa caucuses in historic landslide; DeSantis places 2nd: The Morning Rundown, Jan. 16, 2024
In a dominant victory, former President Donald Trump walks away the winner in Iowa. And the two largest supermarket chains in the country are sued over their proposed merger. These stories and more highlight The Morning Rundown for Tuesday, Jan. 16, 2024.
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Trump easily wins Iowa caucuses; DeSantis & Haley battle for second
It did not take long for a winner to be decided in Monday’s Jan. 15 Iowa caucuses. Just a half-hour into the first 2024 Republican presidential contest, former President Donald Trump was declared the victor by multiple news outlets.
“This has been an incredible experience,” Trump said. “This is the third time we’ve won, but this is the biggest one.”
Following the results, entrepreneur Vivek Ramaswamy ended his bid for the presidency, saying he’s endorsing Trump for the White House. Next, the GOP candidates set their sights on New Hampshire for the first-in-the-nation primary on Jan. 23.
After winning big in Iowa on Monday night, Jan. 15, Trump is once again expected to be in court Tuesday, Jan. 16, as a civil damages trial begins in New York concerning a defamation case brought by columnist E. Jean Carroll. Following those proceedings, the former president is set to fly to New Hampshire for a rally.
U.S. condemns Iran’s attack on Iraq near American consulate
The Kurdistan Regional Security Council said four people were killed in the attack, and six others were wounded. In a statement, U.S. State Department spokesperson Matthew Miller said the U.S. strongly condemns Iran’s missile strikes in Iraq, which undermine Iraq’s stability. The IRGC also claimed it hit ISIS targets in Syria. A White House official said the U.S. has tracked the missiles that impacted northern Iraq and Syria and said no U.S. personnel or facilities were targeted.
Israel moving to a new phase of war in Gaza
It has been more than 100 days into the Israel-Hamas war, and the death toll has reached 24,000, according to Palestinian authorities. Now, Israel has announced it is changing pace.
The country’s defense minister said on Monday, Jan. 15, that Israeli forces have finished “intensive” ground operations in Northern Gaza, and that phase in the south is coming to an end soon. It comes as world pressure to limit mass casualty events continues to mount.
United Nations Secretary-General António Guterres said that starvation looms over Gaza, adding that the humanitarian situation is beyond words.
“The onslaught on Gaza by Israeli forces over these 100 days has unleashed wholesale destruction and levels of civilian killings at a rate that is unprecedented during my years as secretary-general,” Guterres said.
Still, the fighting is not over yet, as Israeli officials say keeping the pressure on Hamas in Gaza is the only way to free 132 hostages. And there are still talks on what post-war Gaza looks like, with the U.S. saying that the Palestinian Authority should have a role in governance, something Israel disagrees with.
Swatting incident at the White House
Firefighters and EMS responded to the White House after a 911 caller reported a fire had broken out with someone trapped inside on Monday morning, Jan. 15. When crews arrived on the scene, there was no fire; according to officials, it was a swatting incident.
It is still unclear who called in the fire, but the Secret Service said that any fire at the White House would be immediately detected, and there was no fire. President Biden was at Camp David in Maryland when the call came in. Though law enforcement did not respond in this instance, the incident falls in line with a wave of swatting attempts on congressional leaders, judges, and other elected officials in recent weeks.
Washington state sues to block Kroger, Albertsons merger
The two supermarket chains issued a joint statement, calling Ferguson’s decision to file a lawsuit “premature” since the merger is still under review by the Federal Trade Commission. The deal was announced in 2022, and last year, Kroger said it would sell more than 400 stores to help the merger get approved. The supermarket chains said a merger is necessary to compete with retail giants like Walmart and Amazon.
Big night for Elton John, ‘The Bear,’ and ‘Succession’ at the Emmys
Award season continued in Hollywood Monday night, Jan. 15, with the 75th annual Emmy Awards, following a four-month delay due to the actors’ and writers’ strikes. On a night honoring the best in television, it was a legendary musician who made history. Elton John won the Emmy for Outstanding Variety Special for his Disney+ farewell concert. With the win, John officially became an EGOT, a performer who has won an Emmy, Grammy, Oscar, and Tony.
It was another big night for “Succession” as the HBO show won outstanding drama series for its final season, and outstanding comedy series went to the FX series “The Bear.” Both shows topped all others, taking home six awards apiece.
Step aside, Disney: Mickey Mouse belongs to all of us now, sort of
It’s the day Disney tried for decades to avoid: Mickey Mouse entered the public domain on Jan. 1. However, before appropriating Disney’s iconic mascot, know that the only free-for-all is the specific version from 1928’s “Steamboat Willie.”
Each year, copyrights expire on a new set of works. Individual copyrights are protected for the creator’s life plus 70 years. Meanwhile, corporate-owned works like “Steamboat Willie” remain intact for 95 years from initial publication.
“Copyright, by design, lasts for a limited time,” said Jennifer Jenkins, director of the Duke Center for the Study of Public Domain.
Jenkins also writes an annual column for “Public Domain Day,” sharing the latest set of works.
“While the copyright is active, it gives the authors, the rights holders, exclusive rights to make copies and to adopt the works,” Jenkins added. “And that’s a very good thing because it provides economic incentives that spur creativity. But after the term expires — when those works go into the public domain — that’s a great thing too, because that means those works can inspire future creators.”
Disney’s piece in question was originally set to enter public domain in 1984. However, the House of Mouse lobbied for a 20-year extension to the copyright term, which Congress granted in the 1970s. In 1998, Congress passed another piece of legislation known as “The Mickey Mouse Protection Act,” which added 20 years to the protection of Disney’s global ambassador and other works.
Only the “Steamboat Willie” version of Mickey — the pupilless mouse with a long tail and a nose that looks more like a rat’s — will enter the public domain. Any more modern versions remain protected under copyright law, as Disney frequently modernizes the mouse and updates the terms.
In 2022, another icon of purity entered the public domain: Winnie the Pooh from A.A. Milne’s original stories. But once again, this protects future iterations, specifically those used by Disney.
“It’s the original Winnie the Pooh as you encounter that charming little bear in the book from 1926, which has many of, not just the visual character, but the personality attributes. You know, the humility, the love of honey, the always being there for his friends,” Jenkins said.
Shortly after making his debut in the public domain, the honey-loving bear was given the horror treatment in “Winnie the Pooh: Blood and Honey.” The film featured Christopher Robin’s return to the Hundred Acre Wood where Pooh and Piglet have become murderous psychopaths.
This marked the first time Pooh wasn’t made for kids, but a South Florida teacher screened it for their fourth grade classroom anyway. Students asked for the teacher to stop airing it and those who felt traumatized met with a school-provided mental health counselor.
“Everything that’s been spawned by Shakespeare, you’ve got ‘Rosencrantz and Guildenstern Are Dead’ from Hamlet; or you have ‘West Side Story’; or you have ’10 Things I Hate About You’ and ‘Romeo Must Die’ and ‘Gnomeo and Juliet’ — the whole point of the public domain is it enables all these reimaginings,” Jenkins said.
But it’s not unfettered access. There are still several limitations, especially when balancing the distinction between copyright and trademark law.
I can make my own animation off of it, but I can’t go around slapping Mickey Mouse the character on a backpack or a lunchbox or a pair of pajamas, because people would think it was Disney-licensed merchandise.
Director Jennifer Jenkins, Duke Center for the Study of Public Domain
“I can make my own animation off of it, but I can’t go around slapping Mickey Mouse the character on a backpack or a lunchbox or a pair of pajamas, because people would think it was Disney-licensed merchandise,” Jenkins said.
“It’s possible sometimes to have trademark rights, which is a different kind of law over characters,” she continued. “And they don’t expire after a set term the way copyrights do. They last for as long as someone is using that character as a brand.”
If the number of products featuring the famous mouse is any indication, Disney isn’t worried about losing that trademark. As for the public domain, the company itself has greatly benefitted from that arrangement since its inception.
“‘Snow White,’ ‘Sleeping Beauty,’ ‘Cinderella,’ ‘The Three Musketeers,’ ‘Christmas Carol,’ ‘Alice in Wonderland,’ all of these Disney movies were based on public domain works,” Jenkins said.
Disney told The Associated Press in December that ever since Mickey Mouse’s first appearance, “People have associated the character with Disney’s stories, experiences and authentic products. That will not change when the copyright in the ‘Steamboat Willie’ film expires.”
Pooh’s springy friend Tigger also joins Mickey Mouse in the public domain this year, but Jenkins says one of the best things about a copyright running out isn’t the headline-grabbing works.
“One of the most exciting things for me about the public domain is all of those works that no one’s thinking about, no one’s heard of, that have been completely forgotten after 70, 80, 95 years,” Jenkins said. “Those are the works where the barriers to access have been removed and they’re waiting to be rediscovered.”
Reports: Warner Bros., Paramount in talks about potential merger
According to multiple reports, Warner Bros. Discovery and Paramount are in talks of a potential merger. As first reported by Axios, sources say the CEOs of the two companies met over lunch on Tuesday, Dec. 19, at Paramount’s New York City headquarters for several hours, where they discussed the possible deal. The merger between the two media giants would mean combining their streaming services, Max and Paramount+, to compete better with Netflix and Disney+.
Warner Bros.’ Max currently has 95 million subscribers, and Paramount streaming service Paramount+ has 63 million subscribers. A merger between the two media conglomerates would give them a better chance to compete with the more popular streaming services Disney+, with 105 million subscribers, and Netflix, with 247 million subscribers.
“The mere reality of two major players being driven by mutual challenges and competitive forces to entertain a merger is an indication that collaborations, mergers and acquisitions at all levels may be needed to survive today’s market pressures,” Erickson said.
Paramount would bring its TV assets like CBS and Nickelodeon to join WBD’s operations, which include CNN and HBO. On the movie front, Warner Bros. Pictures has the DC Universe and Lord of the Ring film franchises. Paramount’s properties include Mission Impossible and Star Trek.
The deal could mean WBD buying Paramount or its parent company, National Amusements. Sources said both options are on the table.