Jul 5, 2017

Viewers are abandoning Disney's channels

Damian Dovarganes / AP

"It's not just ESPN" is the to-the-point subhead of this Wall Street Journal front-pager, "Disney's Channels: Children Are Tuning Out ... Ratings have fallen significantly at Disney's biggest television brands, led by Disney Channel and Freeform, which reach children, teens and young adults," by Joe Flint and Ben Fritz:

"Disney Channel and Freeform ... [e]ach ... has lost about four million subscribers over the past three years, bringing them to about 90 million apiece."

Why it matters: "The shift to streaming services such as Netflix Inc. and web-based platforms like Google's YouTube is particularly pronounced among younger viewers."

"According to Nielsen, among people ages 2 through 34, prime-time viewing has dropped by 34% in the past five years."

Lingo: Disney Channel President Gary Marsh has a stiff-upper-lip term for young people dropping cable like a bad habit as they move to mobile: "migration."

Go deeper: From yesterday's Media Trends newsletter (sign up here) by Axios' Sara Fischer, "The skinny revolution": "All five of the largest Pay-TV providers in the U.S. are now experimenting with skinny bundles — a TV streaming package with fewer channels for less money. (The average skinny bundle is roughly $40/month while the average cable package in America is around $103/month.)"

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HBCUs are missing from the discussion on venture capital's diversity

Illustration: Eniola Odetunde/Axios

Venture capital is beginning a belated conversation about its dearth of black investors and support of black founders, but hasn't yet turned its attention to the trivial participation of historically black colleges and universities (HBCUs) as limited partners in funds.

Why it matters: This increases educational and economic inequality, as the vast majority of VC profits go to limited partners.

Unemployment rate falls to 13.3% in May

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. unemployment rate fell to 13.3% in May, with 2.5 million jobs gained, the government said on Friday.

Why it matters: The far better-than-expected numbers show a surprising improvement in the job market, which has been devastated by the coronavirus pandemic.

The difficulty of calculating the real unemployment rate

Data: U.S. Department of Labor; Note: Initial traditional state claims from the weeks of May 23 and 30, continuing traditional claims from May 23. Initial PUA claims from May 16, 23, and 30, continuing PUA and other programs from May 16; Chart: Andrew Witherspoon/Axios

The shocking May jobs report — with a decline in the unemployment rate to 13.3% and more than 2 million jobs added — destroyed expectations of a much worse economic picture.

Why it matters: Traditional economic reports have failed to keep up with the devastation of the coronavirus pandemic and have made it nearly impossible for researchers to determine the state of the U.S. labor market or the economy.