
Get in the KNOW
on LA Startups & Tech
XThe New Hope in Disney's Dismal Earnings Report: Disney Plus
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

COVID-19 has so far vaporized $1.4 billion of Disney's operating income, the media giant reported in its second-quarter earnings statement.
The bulk of it: A $1 billion loss from the entertainment giant's parks, experiences and products segment, as Disney has had to close its theme parks and retail stores and suspend cruises and tours because of the novel coronavirus. Overall earnings per share fell 63% year-on-year, a stark difference from what investors have come to expect from most Disney earnings periods. The company also announced that it will forego its semiannual dividend in July, which it estimated will save over $1 billion.
Nestled within the bleakness, however, shines Disney's streaming platform, Disney+, perhaps a New Hope in a pandemic era where the virus is shutting down filming and forcing people to stream instead of heading to the cinema.
The streaming service — which launched in November offering a wide range of viewing options including Disney originals, Star Wars, Marvel, and the former 21st Century Fox library — now boasts 54.5 million subscribers, the company said. That number is bolstered by subsidized users through a partnership with Verizon, and the conversion of Disney-owned Indian media firm Hotstar customers to Disney+. Yet, executives touted the platform's performance as a sign of Disney's resiliency and cause for optimism.
Disney+ Booth And Signage D23 Expo 2019 | Anthony Quintano | Flickrlive.staticflickr.com
Adding some color to the grim figures surrounding Disney's theme parks, the company announced it plans to reopen its Shanghai park on May 11th. Numerous safety measures will be implemented, including requirements that employees and guests wear masks, and density restrictions.
LightShed Partners media analyst Rich Greenfield has described the position Disney is in with its parks as a "lose-lose," wherein a given park must either remain closed and eat its fixed costs, or open and risk low attendance plus reputation damage should problems arise. The Shanghai park experience will be a beacon for what to expect regarding Disney's other parks in Tokyo, Hong Kong, Paris, Orlando and Anaheim.
Similarly, the expected performance of Disney's film slate will be informed by film releases elsewhere, said Chief Executive Bob Chapek during a call with analysts. Christopher Nolan's Tenet remains set for release by AT&T-owned Warner Bros. on July 17; Chapek pointed to the film, which he referred to as an anonymous "competitive movie," as a good clue for what to expect for Disney's own tentpole film Mulan, which is set to reach the big screen one week later (originally scheduled for March 27).
Then there's the whole studios vs. cinema controversy.
In light of last week's open-letter salvos between Universal Studios and AMC theaters regarding the former's plans to eschew the long-entrenched Hollywood practice of giving film exhibitors a window of exclusivity – which resulted in AMC declaring it would immediately stop showing all of Universal's films – Chapek walked a diplomatic line: "We very much believe in the value of the theatrical experience overall," he said. "But because of evolving consumer dynamics, or because of COVID-19, we may have to make some changes to that overall strategy because the theaters aren't open. We're going to evaluate each movie on a case-by-case situation."
Overall, Disney's Studio revenues were up by 18% year-on-year, though this was partially due to the consolidation of the 21st Century Fox acquisition (since renamed TFCF), and doesn't account for the additional havoc that COVID-19 has wrought since the end of the Q2 earnings period.
Disney's Media networks reported a 28% revenue increase, also boosted by the TFCF consolidation. Ad sales have seen a "significant impact" from the virus, said Chief Financial Officer Christine McCarthy. With no live sports, ESPN was hit particularly hard. Disney executives, however, emphasized the popularity of the recently aired NFL Draft, which they said had a record 50 million-plus viewers across the event's three days, and the ongoing documentary series about the Michael Jordan-era Chicago Bulls, The Last Dance, which the company claimed is the "highest rated original documentary of all time."
Such indicators, the company said, suggest a "pent-up demand" for sports -- a phrase the executives also used when discussing the company's parks and studio businesses.
Whether or not that comes to fruition, it is clear that the demand for streaming has already been unleashed.
Disney's ongoing push there continues to represent a big chunk of the company's future. But the scourge of COVID-19 may obstruct those plans. "We believe Disney will be forced to cut back on strategic investments and substantially reduce costs, just as investors were hoping they would increase investment to take advantage of their successful pivot to streaming," Greenfield wrote.
This was Chapek's first earnings call since taking over the executorship from longtime CEO and Chairman Bob Iger in February. What Chapek must now deal with hardly resembles what he inherited. Iger has reportedly retained a more hands-on role than the succession plan initially entailed. And it was Iger that led Tuesday's call with Wall Street analysts, perhaps to keep investors calm with continuity. As the drama continues to unfold across the conglomerate, the question is: Will the happiest place on Earth be able to bob its way through the blows dealt by the coronavirus?
Shares fell 2% on the day to $101 in after-hours trading on the New York Stock Exchange, down from an all-time high of about $150 just months ago.
---
Sam Blake covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA
- Disney's Bob Iger Will Focus on Digital Innovation - dot.LA ›
- Disney - dot.LA ›
- Florida is Poised to Reopen Disney World and SeaWorld - dot.LA ›
- Florida is Poised to Reopen Disney World and SeaWorld - dot.LA ›
- Disney Plus Surpasses 60 Million Subscribers - dot.LA ›
- Instagram Launches TikTok Competitor, Reels - dot.LA ›
- What Mulan 2020 May Mean for Disney+ and Movie Distribution - dot.LA ›
- Disney Reorganizes to Focus on Streaming - dot.LA ›
- Disney Shares Drop Sharply After Big Subscriber Miss - dot.LA ›
Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake
Subscribe to our newsletter to catch every headline.
LA Latino/a Founders On Why Authenticity Matters in Tech
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
As one of the most diverse cities in the world, Los Angeles is home to almost 5 million people who identify as Hispanic or Latinx. Yet, many feel they still lack representation in the city’s tech space.
“I can safely say that last year’s LA tech week hosted all of the events on the west side, and very few were focused on telling Latino and Latina entrepreneurial stories,” said Valeria Martinez, investor at VamosVentures. “We wanted to change that this year.”
The event, titled “The East Side Story –– Latino/a Founders and Funders in LA,” was held at Los Angeles Cleantech Incubator (LACI) in the vibrant Arts District with participation from VamosVentures, LatinxVC, VCFamilia, Supply Change Capital, and LEEAF.
The event was centered around stories about the Latinx community told by its members. “Storytelling is the most powerful tool we have as human beings,” said restaurateur Bricia Lopez. “We are all here because of the stories that were told to us and the stories that were read to us.”
Lopez’s father migrated to Guadalajara, Mexico because he heard a story about a better life on the other side of the border. While he didn’t have the opportunity to see that “better life,” Lopez wants to share his story with the world in the hopes of inspiring others to share their stories.
“I think for many generations, we were the gatekeepers holding us back from telling our own stories,” Lopez said. “But we are now empowered to share our stories and when we talk about wanting to hear stories from us, it's because we want a mirror into the possibility of who we can become. To me that was how powerful a story is.”
With over 400 RSVPs and a packed house that ranged from founders and investors to vendors and aspiring entrepreneurs, the event brought light to a community hungry for stories they can connect and relate to.
Fanny Grande, CEO of Avenida Entertainment Group, said that on-screen stories about the Latino community are very limited. This lack of representation inspired her to start her production company that aims to empower independent creators.
“The advances of technology, social media and the new generation being very vocal about how they want to be represented gives me hope that things are going to change,” Grande said.
One way Avenida Entertainment Group champions its creators is by providing tech solutions to help fund and produce projects. At the event, Grande announced that her production company plans to launch an English-language streaming service for Latinos to provide visibility to these projects.
“A lot of our clients are so happy that not only did they get their projects made, they're going to be seen by the community who funded the project,” she said.
Patty Rodriguez, co-founder of publishing company Lil’ Libros, aims to give representation to the Latinx community by publishing bilingual children’s books.
Rodriguez said that entrepreneurship was never a part of her vocabulary while growing up. She also had no experience in publishing before she started her business, but she believed that “we belong on these platforms.” For her, the greatest moments are opening the doors for Latinx authors and seeing copies of their books at major bookstores.
“It's so beautiful to see your dreams come true and you're working every morning to see them,” she said. “It's wonderful to see them at Target, Barnes & Nobles across the country.”
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
L.A. Tech Week has brought venture capitalists, founders and entrepreneurs from around the world to the California coast. With so many tech nerds in one place, it's easy to laugh, joke and reminisce about the future of tech in SoCal.
Here's what people are saying about day three of L.A. Tech Week on social:
Who's out at #LATechWeek This Week!? 🚀
Just like always, we have the team on location & producing out-of-this-world content! 🪐
Follow @Techweek_ 👈 https://t.co/bl7MvmhVIb
— Edge of NFT 🎙 (@EdgeofNFT) June 7, 2023
Ethereal Engine blowing our minds today #LaTechWeek@Techweek_@andrewchen@KatiaAmeri@john_at_stonks@75SunnyVentures@mucker@fikavcpic.twitter.com/zfw38Fo17m
— Sean Goldfaden (@seangoldfaden) June 7, 2023
Great Tuesday at #LATechWeek - @STHoward and @houseofvc hosted an impressive set of entertainment panels that ft. @spencerrascoff and @tbiggio and others and then went to a @CrosscutVC and @75SunnyVentures party in the Palisades. Excited for @dotLA tonight! pic.twitter.com/eWKAtvQshv
— Garrett (@GRothstein1) June 7, 2023
Yesterday, the Ampera Foundation attended @lightspark's #LATechWeek meetup in LA focused on payments and lightning, and the Ethereum Chicago meetup at the @im_not_art gallery space connecting with the local crypto community. What's your favorite local crypto event? pic.twitter.com/kg7m0bIHld
— Ampera (@ampera_xyz) June 7, 2023
Excited to be helping with LA #techweek at #Google today. In partnership with #a16z and #Stonks, we have some exciting founders pitching their Ent & Gaming business demo's.#LATechWeekpic.twitter.com/J2gkE7L5fq
— Jonny Cranmer (@jonnycranmer) June 7, 2023
WOW!🔥VC panel last night w @adelajamal@jarichert44@jekerner@GarnetHeraman@joshresnick01 & Anne Feuss
We discussed community, empathy, fundraising & mental health (& more) during this challenging time
So grateful to have such a real discussion w diverse humans#LATechWeekpic.twitter.com/GtjVnRQkuu
— Roger DaSilva (@RogerDaSilva1) June 7, 2023
Such a fun throwback to the event we did in 2022 for #LATechWeek ! Thanks @seangoldfaden for the amazing video 🎉 https://t.co/SWYCXbMDJe
— Amplify.LA (@amplifyla) June 7, 2023
We hosted a packed @whitecapai happy hour in Venice with panelists from @Verizon@Microsoft@Google and @LA28 with diverse thoughts on Enterprise AI. Thanks Alex Chao, Ric Edwards, Iman Ghanizada, and Mumtaz Vauhkonen! #LATechWeekpic.twitter.com/pCXXbxDAoY
— Craig DAVIS (@CraDav) June 7, 2023
Thoroughly enjoying #LATechWeek so far, I started Day 2 of with @SlausonAndCo amazing event. Ran into so many familiar faces, met some amazing new founders then checked out their art gallery.
Then popped by @BLCKVC and @diversityvc panel on Navigating the Capital Landscape pic.twitter.com/8PKcT5Wr8u
— Tanisha (@tanisha_london) June 7, 2023
Reunion of old and new friends is LA Tech Week’s PMF 💡
The irony is that for how big LA is, people haven’t seen others for a while, because its vastness makes serendipity challenging. So this week gives the community an excuse to catch up with coworkers and even childhood and… pic.twitter.com/NS8ID8rnP5
— Wilson Kyi (@WilsonKyi) June 7, 2023
Excited for the @LatinxVCs Avanza Summit! @itsmarielasalas@MariaSalamanca@jomayra_herrera@RamiReyesVC@aguerrerovc@ambersvida@nic_detommaso@VCSerge#LatinxVC#LATechWeekpic.twitter.com/DdtYcrCzaY
— Tiq (@TiqChapa108) June 7, 2023
If you wonder how #Music,#Space,#AI come together for you in one place - join our Twittet Space 11 am PST
@https://twitter.com/i/spaces/1OwxWwQqoWDxQ CopernicSpace @spaceibles and @LadyRocketSpace ,I will share endeavors LA Tech Week how I buildnew Stage for @spaceibles… pic.twitter.com/djXDuENiWI
— Lady Rocket Eva Blaisdell (@LadyRocketSpace) June 7, 2023
What a great time for LA tech week, escape New York at the right timehttps://t.co/FEHhYgmxHU
— Christopher | Mad Oath 🆔 (@chrismadoath) June 7, 2023
Here representing Australia. Hello #latechweek it’s nice to meet you. pic.twitter.com/rDIOM7hflJ
— Christopher Bartlett (@chipershot) June 7, 2023
(1/2)
In the thick of LA Tech Week and loving it!! 🤘🤘🤘
🔥🔥Scroll for new events!!! 🔥🔥 pic.twitter.com/5n6eV81oiE
— Tech Week (@Techweek_) June 7, 2023
#LATechWeek are you ready for the @trustfundvc launch party?!!! We got a disco ball too pic.twitter.com/smIJFAKlcA
— Sophia Amoruso (@sophiaamoruso) June 7, 2023
#robstory 157/365: tonight’s “The East Side Story” event in the Arts District for #LATechWeek proves what’s possible in our LA entrepreneurial economy! It proves our opportunity to breathe life into our words about diversity & inclusion. Take note, I did!
I’m so so grateful to… pic.twitter.com/ks45MdY7BF
— Rob Ryan (@IAmRobRyan) June 7, 2023
Had a blast at LA @techweek_ last night! Huge thanks to Eddy for his amazing storytelling and the behind-the-scenes look into @goatapp’s journey to product-market fit. And of course, to all the founders, startup enthusiasts, and @firstround team for showing up to support 🙌 pic.twitter.com/93bieSkbBA
— Todd Jackson (@tjack) June 7, 2023
“Gamify the experience of consuming. Drink an ape water? Scan the code. It donates .05 to clean water.” #LATechWeek@Techweek_pic.twitter.com/ZpKbadNSh1
— Sean Goldfaden (@seangoldfaden) June 7, 2023
Moderating is easy when you have brilliant folks like @Chrisjjosephs and @brianschardt on the other side
Was great to talk @JoinAutopilot_ during #LATechWeekhttps://t.co/v9CEshahPL
— James Mumma (@JamesMumma) June 7, 2023
A beautiful, intimate networking event discussing all things Fintech with founders and innovators on Day 3 of #LATechWeek with Clocktower Ventures. 🤩 pic.twitter.com/z3SMPMoTZw
— Tech Week (@Techweek_) June 7, 2023
- LA Tech Week: How Local Climate Investors Assess and Vet Green Startups ›
- How Discord and Xbox Are Working To Keep Up with AI’s Rapid Advancement ›
- Here’s What To Do At LA Tech Week ›
- SUPERCHARGE LA: Access to Capital & Cocktails #TechWeek ›
- Tech Week Will Return to Los Angeles This June ›
LA Tech Week: Female Founders Provide Insights Into Their Startup Journeys
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.
Women remain a minority among startup founders. According to Pitchbook, even though women-led startups in the United States received a record $20.8 billion in funding during the first half of 2022, U.S. companies with one or more female founders received less than 20% of total venture funding in 2022. U.S. companies solely led by female founders received less than 2% of the total funding.
The panel, titled Female Founders: Planning, Pivoting, Profiting, was moderated by NYU law professor Shivani Honwad and featured Anjali Kundra, co-founder of bar inventory software Partender; Montré Moore, co-founder of the Black-owned beauty startup AMP Beauty LA; Mia Pokriefka, co-founder and CEO of the interactive social media tool Huxly; and Sunny Wu, founder and CEO of fashion company LE ORA.
The panelists shared their advice and insights on starting and growing a business as a woman. They all acknowledged feeling pressure to not appear weak among peers, especially as a female founder. But this added weight only causes more stress that may lead to burnout.
“The mental health aspect of being a founder should not be overshadowed,” said Kundra, who realized this during the early stages of building her company with her brother..
Growing up in Silicon Valley, Kundra was surrounded by the startup culture where, “everyone is crushing it!” But she said that no one really opened up about the challenges of starting your own company. .
“Once you grow up as a founder in that environment, it's pretty toxic,” Kundra said. “I felt like I really wanted to be open and be able to go to our investors and tell them about challenges because businesses go up and down, markets go up and down and no company is perfect.”
Honwad, who advocates for women’s rights, emphasized the value of aligning yourself with people with similar values in the tech ecosystem. “[Those people] can make your life better not just from an investment and money standpoint, but also a personal standpoint, because life happens,” she said.
Moore, who unexpectedly lost one of her co-founders at AMP Beauty, said that entrepreneurs “really have to learn how to adapt to [their] circumstances.”
“She was young, healthy, vibrant and we've been sorority sisters and friends over the past decade,” she said about her co-founder Phyllicia Phillips, who passed away in February. “So it was just one of those moments where you have to take a pause.”
Moore said this experience forced her to ask for help, which many founders hesitate to do. She encouraged the audience to try and share their issues out loud with their teams because there are always people who will offer help. When Moore shared her concerns with her investors, they jumped in to support her in ways she didn’t think was possible.
Kundra said that while it is important to have a support group and listen to mentors, it is very important for entrepreneurs to follow their own thinking and pick and choose what they want to implement within their strategy. “At the end of the day, you really have to own your own decisions,” she said.
Kundra also said that while it is easy to turn to your colleagues and competitors and do what they are doing, you shouldn’t always follow them because every business is different.
“When I was in the heat of it, I kind of became [a part of] this echo chamber and that was really challenging for us,” Kundra added, “but we were able to move beyond it and figure out what worked for us [as a company] and we're still on a journey. You're always going to be figuring it out, so just know you're not alone.”
- "If You Want to Make Money, Invest in Women." ›
- 'We Can’t Let Data Stop Us': Why Funding Inequity Isn't Deterring These Female Founders, VCs ›
- LA's Top VCs Are Watching These 10 Female Founders ›
Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.