Blockbusters Still Matter--Disney vs Twenty-First Century Fox
By: Nicole Urken | 02/06/14 - 04:05 PM EST
NEW YORK (TheStreet) -Disney (DIS)
, led by Bob Iger, reported an across-the-board beat, with cable--the largest segment--the highlight of the quarter including ESPN ad growth up 10%.
But it was Frozen, the box office hit, that stole the show. This studio success fits into Disney's ability to benefit from a brand across its segments-including parks and consumer. Disney has transformed its studio division via the acquisitions of Pixar in 2006, Marvel in 2009 and Lucasfilm in 2012. And this will continue to be a big driver for the company.
Meanwhile, the recently spun-out Twenty-first Century Fox (FOXA)
reported a disappointment in its Filmed Entertainment division due to lackluster performance versus last year's releases (The Secret Life of Walter Mitty
and Walking with Dinosaurs
vs Taken 2
and Life of Pie
). And the home entertainment comps (Wolverine
vs Ice Age 3
) were also unfavorable. This matters. That said, this stock remains well positioned from Cable Network strength, the majority of its profits (like Disney) and of course is a newly focused company after spinning out from News Corp (NWSA)
in June of last year.
That said, Disney remains a step above and the best positioned of the group.
--Written by Nicole Urken in New York.
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