Disney’s Fiscal Full Year and Q4 2022 Earnings Results Webcast

[Sirwalterraleigh]

Something I realized yesterday...

HBO and Netflix have both been boasting their cancellations in the trade papers recently. In the broader sense, I realize that the street is trying to adjust how they value streaming services, and they're definitely now focusing more on profitability rather than subs, but both Netflix and HBO has shown a desire to take the hard path of reducing costs...

... while Disney has not.

In fact I didn't hear much mention from Disney/News about the 30+ billion Disney promised to spend on new content. Did they try to walk that back at all?

They have to adjust their valuation because none have shown any real value to this point.

 

[TalkingHead]

Market’s down about 0.6%. Disney’s down 11.5%….


View attachment 677436

Investors to Chapek: “Have a magical day”

 

[MisterPenguin]

Streaming is dead. Wall Street has spoken.

 

[Disney Analyst]

And yet Disney stock was hitting crazy highs when all their parks, cruise ships, etc. were shut down…

Make it make sense.

 

[TalkingHead]

Disney+ is disappointing, the “Disney” stuff is lacking. Need more imagineering story type things. Or what about a come back of Wonderful World of Disney every Sunday, pick a classic each week and get people from the studios do some intros/interviews/behind the scenes about the movie, what about bringing back that Epcot show talking about real life things that inspired the park. I’m not a Star Wars or marvel fan so none of that interests me. Also they need someone to help them manage their branding and how they’re adding the fox content into the service. I hate that they just lump everything else into “Disney”. Peanuts isn’t Disney. I’ve age isn’t Disney. Simpson isn’t Disney. Make a 20th Century category and put all that stuff there and stop diluting your supposedly premier brand.

What you’re really describing is a company that no longer has a discernible identity and whose content has lost its foothold in the entertainment marketplace. Whoops, how did that happen?

 

[el_super]

They have to adjust their valuation because none have shown any real value to this point.

That's debatable. It's not like ESPN is doing all that well right now...

Streaming services are here to stay. They just spent fantastic sums of money to prove they are legit and now that they are established, the era of cost cutting and profitability needs to start. It's hard to gauge what that will look like. They want cable-like profitability, but streaming basically got a foothold on the market by being cheaper and more flexible than cable. A subscription to Disney+ was on par with the individual channel costs of having ESPN in a cable package. I don't think people want to go back to that.

 

[el_super]

What you’re really describing is a company that no longer has a discernible identity and whose content has lost its foothold in the entertainment marketplace. Whoops, how did that happen?

What are you talking about? Isn't Disney the highest-sub'd service now? They don't need a foothold when they basically own the mountain.

 

[CaptainAmerica]

Streaming is dead. Wall Street has spoken.

View attachment 677440

I mean.

Chips.

Athletic wear.

Retail.

 

[TrainsOfDisney]

Nobody asked me but I think Disney+ should have been a “premium” service for Disney fans, not try to compete with Netflix.

Charge more and it’s ONLY Disney (and Disney owned like Star Wars, etc. but on the Disney brand of family entertainment.) have a few behind the scenes originals like Imagineering etc. and maybe a few Pixar shorts that are “exclusive” but don’t spend big money on content.

 

[Sirwalterraleigh]

That's debatable. It's not like ESPN is doing all that well right now...

Streaming services are here to stay. They just spent fantastic sums of money to prove they are legit and now that they are established, the era of cost cutting and profitability needs to start. It's hard to gauge what that will look like. They want cable-like profitability, but streaming basically got a foothold on the market by being cheaper and more flexible than cable. A subscription to Disney+ was on par with the individual channel costs of having ESPN in a cable package. I don't think people want to go back to that.

They are…

But cost for content is highly variable and wall st hates that.

And there are price ceilings…just like they ran into in cable

And ad revenue is a big unknown

 

[Tha Realest]

Six Flags' and Royal Caribbean stock is double what it was in March 2020. Comcast/Uni, TDWC's biggest competitor in the theme park space, is only down .67% today.

The company wanted to perform like Netflix. They're getting exactly what they wanted.

 

[flynnibus]

And yet Disney stock was hitting crazy highs when all their parks, cruise ships, etc. were shut down…

Make it make sense.

Like everything stock market - it's about the outlook.

During Covid investors were impressed with Disney's approach and they knew there was light at the end of the tunnel once Disney proved they could keep the ship together and weather the storm.

Now... this is about the outlook for their next growth segment. Feedback is not good for the story TWDC told.

 

[el_super]

But cost for content is highly variable and wall st hates that.

Well yeah. I'm sure there are people out there wondering why, if they got 200+ million subscribers already, why they would need to spend on more content.

That's going to be the end result here: they need to spend less and have fewer new shows.

 

[EricsBiscuit]

Content spending seems to be just burning through cash that Disney could otherwise use to invest in more profitable segments with little (if any) light at the end of the tunnel.

 

[Sirwalterraleigh]

Well yeah. I'm sure there are people out there wondering why, if they got 200+ million subscribers already, why they would need to spend on more content.

That's going to be the end result here: they need to spend less and have fewer new shows.

Right…then you lose subs. People only watch lady and the tramp once

 

[GhostHost1000]

Seeing a lot of calls for Chapek to step down today. Interesting.

 

[HauntedPirate]

Yes, spend less on content. That is a great idea which will definitely keep subscribers around!!

 

[el_super]

Right…then you lose subs. People only watch lady and the tramp once

Yeah but kids like watching animated movies over and over and over.

We won't really know what the sub count does until Disney stops spending money on new content.

 

[TrainsOfDisney]

People only watch lady and the tramp once

Speak for yourself!!!

 

[brb1006]

Disney+ is disappointing, the “Disney” stuff is lacking. Need more imagineering story type things. Or what about a come back of Wonderful World of Disney every Sunday, pick a classic each week and get people from the studios do some intros/interviews/behind the scenes about the movie, what about bringing back that Epcot show talking about real life things that inspired the park. I’m not a Star Wars or marvel fan so none of that interests me. Also they need someone to help them manage their branding and how they’re adding the fox content into the service. I hate that they just lump everything else into “Disney”. Peanuts isn’t Disney. I’ve age isn’t Disney. Simpson isn’t Disney. Make a 20th Century category and put all that stuff there and stop diluting your supposedly premier brand.

Where's "So Dear To My Heart"?