What Not to Miss in Disney's 1st-Qtr Earnings Report

Disney faces financial challenges with ESPN, its once-crown jewel, as its subscriber base declines. ESPN's importance is evident in Disney's operating income, but its leading position also exposes it to risks. Disney plans to launch a subscription-based online version of ESPN to counteract the erosion of its traditional customer base. Meanwhile, Disney's movie studio division thrives, leading the industry in market share and profits. Disney's theme parks, including a new park in Shanghai, are expanding, and there is speculation about potential acquisitions like Netflix or Twitter.

What is one of the main challenges Disney is facing with ESPN?

• Declining subscriber base

• Increasing production costs

• Competition from new sports networks

• Lack of sports content

How much of Disney's operating income did the Media Networks group contribute in fiscal 2016?

• One-third

• Two-thirds

• Half

• One-quarter

What strategic move is Disney planning for ESPN to address the challenges it faces?

• Reducing affiliate fees

• Partnering with other sports networks

• Introducing a subscription-based online version

• Launching a new sports channel

Which division of Disney has been a bright spot, leading the industry in market share?

• Merchandising

• Movie Studio

• Theme Parks

• Television Networks

What potential acquisition has been speculated for Disney?

• Spotify

• Netflix

• Hulu

• Amazon