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Disney’s Q1 FY22 Earnings Results Webcast
- Thread starter DCBaker
- Start date
mightynine
Well-Known Member
I wonder how much of that was people signing up for ESPN+ vs. how many got it when they decided to give the Disney Bundle to Hulu with Live TV subscribers.
Do they actually give a hard number for Bundle subscribers?
JoeCamel
Well-Known Member
I don't think it is released, been wondering how they count all the free D+ subs they give out?
VJ
Well-Known Member
ex-act-ly
Investors think with their bank accounts. As much as Chapek is "ruining the magic", he's filling everyone's coffers including his own. Money trumps magic.
Sirwalterraleigh
Premium Member
Power 5 school…you gotta “blend in”
but your didn’t answer the question, CC…how is this an instance for the application of “systemic” controls?
Sirwalterraleigh
Premium Member
It’s hidden behind the numbers…like a lot of these WWE Produced “public calls” tidbits
Sirwalterraleigh
Premium Member
Wasn’t that the point of it?
all this says was they’re basically flat from 2020-2021 when you consider the decrease/shutdown levels…and they’re up from 2019 due to massive price hikes. In parks. That’s “stable”.
there was also no spike during this…so it may be interesting to see what the next one is? The last one was way down during delta.
JoeCamel
Well-Known Member
This is what Baron's posted today, looks like they have a long way to climb back to 2019 levels....
Sirwalterraleigh
Premium Member
100% correct.
but let’s see what happen with Wall Street/Main Street?
i guarantee this will be an “awful, stagnant economy” by may…no matter the numbers…
and Disney stock isn’t worth $200…or $150 where it’s at…if it dips…the sharks may start to circle Bob.
but I think that bob Isn’t trying to get long here…he is looking for 5 years…which is a smart move on his part.
doctornick
Well-Known Member
What “free” subs? If you mean subscriptions that come with stuff like phone plans, the cell phone companies pay Disney (albeit at a discounted rate) for that. If you mean the Hulu with Live TV subscribers getting D+ and ESPN+ included, it coincided with a price increase for that Hulu tier which presumably was earmarked to go towards the revenue for D+ and ESPN+.
Sirwalterraleigh
Premium Member
Which is different than the narrative portrayed, isn’t it?
it’s almost like they just decide the report before they look at the data?
nah…can’t happen.
Sirwalterraleigh
Premium Member
There were a lot of promotional subscriptions early…but they seem to have subsided.
however, Verizon and AT&T weren’t paying Disney $6.99 a month for those…that’s a little silly if people believe that. It was just to amass numbers.
JoeCamel
Well-Known Member
Expose consumers to the product and get them "hooked" aka dope dealer stereotypes. I've never had a dealer offer anything for free, they are out to make money
Nubs70
Well-Known Member
Same a value engineering. Expect a premium price , no frills experience."Most powerful synergy machine"
You misheard. It's, "YOU are the margin!!!"
I think it's more the power of The Bundle.
Plus, all of Hulu+Live subscribers were automatically enrolled in the bundle. I have Hulu+Live and I will most certainly never have cause to watch ESPN+, but, I'm an ESPN+ subscriber now!!
Rosso11
Well-Known Member
Yes they did actually give out that number at least for Disney+. It was about 2 million for Disney + this quarter came from the bundle with Hulu Live . I would imagine ESPN was a similar number.
AnotherDayAnotherDollar
Well-Known Member
Unrealistic expectations.
1) Comcast has to want to sell their 33% equity in Hulu before being forced to in Jan 2024. It's a two way street and according to execs at Comcast they are happy to wait. According to the trades Comcast currently values their 33% equity at 15B where according to their 10K Disney values that equity at 8.4B. That's almost a 7B gap. How do you reach an amicable agreement with that? That's the reason they are rumored to be in arbitration
2) Expanding parks and resorts. Maybe at D23 this year since by then most of the previously announced new attractions will have launched or being closed to launch. They would then need some new announcements to give people on this forum something to complain about for the next few years.
3) Buying a movie theater chain. I think this is a horrible idea and use of capital. Even before COVID the writing was on the wall and it's only been exacerbated since then. Iger himself mentioned theatrical will probably see fewer movies, but a more premium experience going forward. Owning multiplexes is not in Disney's best interest. If they do want that vertical integration then owning some premium locations in major markets that can be transformed to a unique experience is something they could look into (i.e. Batman is out? Make that location look like Gotham. Avatar? Make it look like Pandora and so on). Even then I'm not sure it would be worth it, but that's the only way I could see them getting in the theater business and it'd be much cheaper than the capital required to buy an existing chain. Buying a theater chain in 2022 is like buying RSNs in 2019 like Sinclair did.
4) Buying Cedar, Six Flags, or Seaworld. Also pretty bad idea and use of capital IMO. A lot of those places would need major refurbishments to bring it up to the standard of Disney's other resorts. They would also need to change the name from Cedar, Six Flags, or Seaworld to Disneyland XYZ. So basically Disney would be buying some premium land including in places where they may not want to have a resort in. Some of those parks also do not own the whole area they are in, so Disney cannot build a whole resort. They'd be better off buying a few hundred acres next to DLR in California for a third park and buying a few thousand acres in TX and building from scratch. Or if the intention is expanding overseas then doing that. Much cheaper too. And btw Six Flags loses the DC and HB license if they get bought out, so that makes them even less desirable.
The main goal for the company should be to deleverage, pay off Short Term Debt that just went up this past Quarter, get Long Term Debt down to historical lower levels, reintroduce dividends and stock buybacks. However, I do agree that Chapek and the board should look into M&A as consolidation is constantly happening and some desirable companies will not be available in 5 years or 10 years down the road. Looking at it now makes sense as they start lowering their ratio and LTD. They are BIG on metaverse and NFTs and IMHO the obvious move here would be game publishers for a multitude of reasons as I mentioned in the other thread.
Forgot they opened D+ up to more countries… Not surprising they made those subscriber numbers.