Disney is a diversified media company and makes money through several businesses including cable networks, broadcasting network, theme parks & hotels, filmed entertainment and consumer products.
Its cable networks include channels such as ESPN, the Disney Channel, ABC Family & others. Disney's broadcasting arm, ABC Network, is one of the biggest broadcasting networks in the U.S. with a wide viewership.
Apart from TV networks, Disney boasts of several theme parks and resorts that attract millions of visitors every year. Furthermore, the company leverages its famous characters and brands to sell a variety of merchandise. Its filmed entertainment unit produces and distributes movies under Disney Studios brand.
Disney's media networks and parks and resorts showed healthy growth in earnings. ESPN is the biggest contributor to Disney's value overall, and we believe the outlook is secure for the sports network giant.
Affiliate and licensing fees are growing contributors to earnings, and this is something to watch. Also Disney acquired the Star Wars franchise and we expect this to help its studio entertainment and consumer businesses.