Why Disney's ESPN Reminds Us of a Totally Different Company ... Apple
ESPN, as YCharts described in detail here, is a driving force behind the success of The Walt Disney Co. (DIS). The division is responsible for more than half of Disney’s operating profit.
DIS Net Income TTM data by YCharts
A recent cover story in Bloomberg Businessweek gets at what makes ESPN so successful. It attracts mass audiences and both covers and controls sports. It's willing to cannibalize existing businesses as it moves into new ones.
Also, it has a distinct culture that reminded us of a completely different company, Apple (AAPL).
ESPN's culture is defined by intense fans both on the customer side and inside the company. Thanks to sports nuts who can’t miss a game, ESPN charges cable affiliates $5.13 a month per subscriber versus the industry average of 20 cents per subscriber. And back in the office, employees are obsessive even if some are underpaid. As CFO Christine Driesen told Businessweek about some underlings in the office, “We pay them very little.”
Apple also has a cult-like culture at its core. Apple fans line up for products the moment they're released. Meanwhile Apple’s retail stores are stocked with devotees who as of this summer made a modest average hourly base pay of $11.91, according to the New York Times –- until Apple announced a round of raises.
From the editors of YCharts.YCharts Pro Investor Service includes professional stock charts, stock ratings and portfolio strategies.
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