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Disney Stock Rises. More Staff Cuts Planned Ahead of Netflix Streaming War. - Barron's

1. Disney plans to lay off 200 employees in its cable division. 2. Shift to streaming, especially Disney+, is a focus for cost savings. 3. Linear networks' revenue expected to drop by 8.6% by 2025. 4. Streaming revenue projected to rise by 9.8% to $6.67 billion. 5. High costs for live sports rights could impact future earnings.

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FAQ

Why Bullish?

Prioritizing streaming may enhance long-term growth, following industry trends. Examples like Netflix's investment in sports have proven effective.

How important is it?

The layoffs indicate a strategic shift that aligns with market trends, impacting investor confidence.

Why Long Term?

Transitioning from cable to streaming may take time to yield results. Successful adaptation could improve DIS stock value over the next few years.

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