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The Walt Disney Company has been in the news a lot recently. Between the Disney layoffs that surprised many a Disney fan with its scope and range. The announcement of this substantial restructuring of the Walt Disney Company, made by CEO Bob Iger, shocked the wider community due to the significant scale of the proposed changes. In the midst of this, Disney has also announced new hires and has clearly been allocating money to spend.
Disney characters in the Disney Park, Magic Kingdom Park, Walt Disney World Resort/Credit: Disney
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The Walt Disney Company is an entertainment giant that, at its core, needs to protect the properties it owns that remain profitable. While simply good business, however, the amount of money it might take Disney to save and retain its rights to the broadcasting of certain events can seem insensitive and unreasonable in the face of the 7000 people who will be losing their jobs and the potential for jobs.
While Disney CEO Bob Iger has noted before that the decision was not one that was taken lightly, it certainly still stings for many who might receive a pink slip that Disney will shell out the money for an acquisition or a buyout like Hulu (if it does decide to go that way).
Bob Iger in his office / Credit: Hollywood Reporter
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This said, one analyst argues that despite how it might look, it’s actually necessary. Barrett Sports Media writer Demetri Ravanos shared that the decision to retain the rights to the NBA is incredibly necessary, considering that Disney is fundamentally a “content company.”
He shared, “The NBA’s price tag will not change whether or not anyone at ESPN keeps their job. Those decisions have already been made.”
Ravanos also made clear “NBA is at the center of so much that ESPN does” it would be sound business to keep ahold of it, whether that’s telecasting the NBA finals, the NBA playoffs or other basketball-based events.
NBA logo featuring Mickey ears / Credit: Barrett Sports Media
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Ultimately, NBA gives Disney great content; the Mouse House presently pays $1.4 billion per year for its NBA rights, and retaining might mean they might need to shell out even more.
However, in the long scheme of things, the investment might be the right call for Disney.
