Can Disney top 2018?

While Disney stock performance was flat in 2018, it was in a year that the S&P 500 fell by more than 6 percent.  While pay-TV cord-cutting continued to take a huge toll on its cable (e.g. ESPN) subscriber counts, other parts of the Disney portfolio of assets (e.g. studio entertainment, parks and resorts) more than compensated.  While some of its media competitors invested billions in original content, Disney had the successful bid (over Comcast) to acquire Fox’s 30 percent stake in Hulu and its production and studio assets.  It also initiated its direct-to-consumer strategy by launching ESPN+.  While it may pale in comparison to Netflix’s sum of 112, Hulu, 30 percent owned by Disney, nabbed 27 Emmy nominations (vs. 2 in 2016 and 18 in 2017).  And, for agreeing to stay on through 2021, Bob Iger picked up an additional $26.3 million in stock options bringing his 2018 compensation to approximately $66 million, making him one of the highest paid CEOs in the U.S.

2019 will be a huge year for Disney as it completes the acquisition of the Fox assets in the first quarter and ends its long-standing relationship with Netflix in the fourth quarter when it launches its second streaming service (Disney+).  For his efforts in leading the beloved brand in a more complex and fragmented media industry, Bob Iger, Disney’s CEO, will continue to be one of the highest paid executives in the U.S.