Rick Munarriz | Source | Contributing Analyst at The Motley Fool

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Rick Munarriz

Contributing Analyst at The Motley Fool
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Rick Munarriz has been a contributing writer and analyst for The Motley Fool since 1995. He holds a B.B.A. and M.B.A. from the University of Miami.

Areas of Expertise
- Communication Services (Media)
- Consumer Staples
- Consumer Discretionary (Travel - Cruise Lines)
- Information Technology

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  • Date: 7/19/23
    Outlet: International Business Times (IBT)
    Article Title: Why Disney Is Looking To Sell Television Assets
    Quotes:
    - In an interview with IBT, Rick Munarriz, a senior media analyst with Motley Fool, said Disney is not likely to make a major transaction because market conditions are no longer favorable for media in general.
    - The main culprit, Munarriz said, is streaming. People are streaming more often and the major media companies are losing money on their streaming packages. The studios are spending too much on developing new content for them while charging too little for the services.
    - Disney launched its streaming platform at the end of 2019. Soon afterward, Paramount, Warner Bros and Peacock owner Comcast Corp. (NASDAQ: CMCSA) launched their own streaming services. They joined technology companies Apple Inc. (NASDAQ: AAPL) and Amazon.com Inc. (NASDAQ: AMZN) with their existing services: Apple TV+ and Prime Video. All of which, Munarriz said, were inspired by the success of Netflix Inc. (NASDAQ: NFLX) and the continuing decline in both cable subscriptions and movie theater attendance.
    - Disney is still profitable, however. The 2022 annual statement said the company turned a profit in its 2022, with $3.145 billion in net income, and its 2021, with $1.995 billion in net income, after reporting a net loss of $2.864 billion in its 2020. However, the company has not paid a dividend to its investors in more than three years, Munarriz said.
    - Munarriz said anything and everything except for Disney+ itself could be up for sale. However, ownership of these properties is complicated. For instance, Hulu is part-owned by Disney and Comcast.
    - Another major media company is unlikely to take up the offer. Munarriz said the appetite does not exist for such a purchase and those companies cannot afford to make it.
    - "You are going to have to pay up for these services. The free ride is over," Munarriz said. "I think subscriber counts will take hits and people aren't going to have five, six, seven or eight streaming services like a lot of homes have these days because they're all so cheap."

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