Disney to Pay $10 Million to Settle COPPA Violations Related to YouTube Content
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Settlement Penalty: Disney has agreed to pay $10 million in civil penalties to resolve allegations from the Federal Trade Commission regarding violations of the Children's Online Privacy Protection Act, highlighting significant legal risks the company faces in children's data protection.
- Compliance Mandate: The court order requires Disney to establish a compliance program to ensure future adherence to children's privacy protections, which will increase operational costs and impact its content strategy on YouTube.
- Content Implications: Disney's failure to properly designate its YouTube content as child-directed led to unlawful data collection, potentially harming its brand image and user trust in the children's market.
- Market Reaction: This incident may raise investor concerns about Disney's regulatory compliance capabilities, negatively affecting its stock price, especially given that its video content has billions of views in the U.S. alone.
Analyst Views on DIS
Wall Street analysts forecast DIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DIS is 137.87 USD with a low forecast of 123.00 USD and a high forecast of 152.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
14 Buy
3 Hold
0 Sell
Strong Buy
Current: 114.190
Low
123.00
Averages
137.87
High
152.00
Current: 114.190
Low
123.00
Averages
137.87
High
152.00
About DIS
The Walt Disney Company is a diversified worldwide entertainment company. The Company's segments include Entertainment, Sports and Experiences. The Entertainment segment generally encompasses its non-sports focused global film and episodic content production and distribution activities. The lines of business within the Entertainment segment along with their business activities include Linear Networks, Direct-to-Consumer, and Content Sales/Licensing. The Sports segment encompasses its sports-focused global television and direct-to-consumer (DTC) video streaming content production and distribution activities. The lines of business within the Sports segment include ESPN and Star. The Experiences segment includes Parks and Experiences and Consumer Products. Parks and Experiences consists of Walt Disney World Resort in Florida, Disneyland Resort in California, Disney Cruise Line, and others. Consumer Products includes licensing of its trade names, characters, visual, literary and other IP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
