PALO ALTO, Calif., Oct. 23, 2020 /PRNewswire/ -- The Electric Power Research Institute (EPRI) this week joined a major international project, the Global Power System Transformation Consortium (G-PST), to help remove technical hurdles to renewable energy...
Disney to streamline its media operations into a single business unit and focus on streaming
A major shareholder asked DIS to suspend plans to pay $3 billion in dividends and instead invest in streaming
Disney stock price is trading over 3% higher this week as the buyers aim for $137
The Walt Disney Company (NYSE: DIS) has announced a major reorganizing of its media and entertainment units to place a bigger focus on its streaming business.
Fundamental analysis: All-in bet on streaming
Disney made an announcement yesterday that it is working to streamline its media operations into a single business unit. As of now, one company will take care of content distribution, ad sales and its streaming platform Disney+.
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This is an apparent move to bet almost all-in on the streaming business. Disney’s business took a battering amid the coronavirus pandemic as it forced its theatres and parks to close. On the other hand, the streaming business added significant numbers by welcoming about 100 million paid subscribers since August.
“I would not characterize it as a response to Covid,” Bob Chapek, Chief Executive of Disney said in an interview with CNBC. “I would say Covid accelerated the rate at which we made this transition, but this transition was going to happen anyway.”
“We are tilting the scale pretty dramatically [toward streaming].”
The latest move from Disney comes just a few days after one of the major shareholders, a hedge fund manager Dan Loeb, asked the company to suspend plans to pay $3 billion in dividends, and instead use these funds to the invest into creating new streaming content.
“We are pleased to see that Disney is focused on the same opportunity that makes us such enthusiastic shareholders: investing heavily in the DTC business, positioning Disney to thrive in the next era of entertainment,” Loeb commented.
Disney furloughed 28,000 employees as its theme parks in the United States stay closed. Last month, Needham downgraded revenue estimates on continued negative impacts.
Technical analysis: Shares gain on reorganization plans
Disney stock price is trading over 3% higher this week on reorganization plans. Investors believe that the increased focus on streaming will bring more revenue and reduce costs for the company.
Disney stock chart (TradingView)
Shares of the company are now trading above the 200-WMA at $125.67, a level that offers major support in the short-term. On the upside, the buyers are likely to target a trip towards the $137 mark, which hosts an 8-month high for DIS.
Disney announced restructuring plans for its media and entertainment operations as it attempts to focus more on its profitable streaming business. According to the CEO, the company was already planning the transition but the pandemic accelerated the entire process.
The ultra-not-expensive airline kicks off its winter schedule with inaugural flight to Toronto Pearson International Airport and seasonal start of Phoenix-Mesa and Mexico flights
EDMONTON, AB, Oct. 25, 2020 /CNW/ - Swoop, the ultra-not-expensive airline, reaffirmed its commitment to Edmonton International Airport today with the launch of its winter schedule including the addition of non-stop service to Toronto Pearson International Airport.
"We are excited to be expanding our ultra-low cost carrier model from Edmonton by adding Toronto to our network" said Bert van der Stege, Head of Commercial & Finance at Swoop. "We know that Canadians are cautious about travelling, and with the significant health and safety measures we have put in place, travellers can rest assured that their safety is our top priority."
The inaugural winter schedule operations this week will also include a return to popular sun destinations such as Puerto Vallarta, Mazatlán and Phoenix-Mesa, while continuing to serve Abbotsford and Hamilton from Edmonton International Airport.
"We've clearly heard from sun seekers that they're looking for options this winter. Thanks to Swoop, we're able to help meet that demand. Safety and security is our top priority and we're confident EIA is ready for these flights in close partnership with the airline. These flights will be safe and will make it possible for local travellers, including snowbirds, to still get their traditional winter break," says Tom Ruth, President & CEO, Edmonton International Airport.
"In a challenging year like we are having, we know that it is more important than ever to help Canadians connect with family and friends. We want to help travellers do that safely, responsibly and affordably," van der Stege added.
Some of the health and safety measures Swoop has introduced includes stricter boarding processes allowing for shorter queue wait times, enhanced screening measures, increased sanitization, and enforcing face masks to be worn for the duration of the flight.
Additionally, all transborder and international round-trip Swoop flight and Swoop Getaways bookings include no-charge COVID-19 travel insurance coverage. This complimentary coverage is added to eligible bookings automatically at time of purchase, made on or after Oct. 15 for travel until Apr. 24, 2021, and is valid for up to 21 days in destination.
The start of its winter schedule marks the next step in Swoop's recovery efforts while remaining true to its mission of offering accessible and affordable air travel to Canadians. As the country's largest ultra-low cost carrier, the airline is uniquely positioned to help drive industry recovery with price-sensitive travellers.
About Swoop Established in 2018, Swoop is Canada's leading ultra-low cost airline, independently operated as part of the WestJet Group of companies, offering point-to-point scheduled service to destinations in Canada, the U.S., Mexico and the Caribbean. Swoop offers completely unbundled products and services, creating the unique opportunity for travellers to control their costs and customize their experience by purchasing only the extras they desire.
Swoop operates a modern fleet of nine Boeing 737-800 aircraft, equipped with in-seat power and Wi-Fi connectivity. Swoop's mobile app allows travellers to quickly and easily book flights, manage bookings, check-in, view boarding passes, track flights and access Wi-Fi service in-flight. For more details on Swoop, visit FlySwoop.com.
For more information and access to ultra-low fares, please visit www.flyswoop.com