Disney’s Q1 FY23 Earnings Results Webcast - Wednesday, Feb 8, 2023

[flynnibus]

Bob said they're not, even pointing out that keeping it in it's own fenced area is definitely not in preparation to sell it off. He said this to purposely stave off rumors.

He said they investigated if they should do it under Chapek and that previous administration's conclusion is that it shouldn't be sold off.

Two Bobs agree!!

Yeah, but I say... "Watch what they do, not what they say". That's why I asked the question about the other TV media portions. I mean I know ESPN is sports and a brand... but it's still media. For a company talking about consolidation and removing duplication... ESPN as a kingdom doesn't sound like it jives with all that.

 

[UNCgolf]

Yeah, but I say... "Watch what they do, not what they say". That's why I asked the question about the other TV media portions. I mean I know ESPN is sports and a brand... but it's still media. For a company talking about consolidation and removing duplication... ESPN as a kingdom doesn't sound like it jives with all that.

It's just hard to imagine they'd want to spin-off/sell something that makes them a ton of profit, and has long-term potential as a huge profit generator in streaming.

 

[wdwmagic]

Well it just wasn't the same without constant talk of "robust content pipelines", "strategic pillars," "Genie+", and "Yield Management."

I kid

I didn't like everything that was said, but listening to Iger is infinitely better than Chapek.

 

[SteamboatJoe]

It's just hard to imagine they'd want to spin-off/sell something that makes them a ton of profit, and has long-term potential as a huge profit generator in streaming.

Bingo. ESPN could be the king of sports streaming just as it was king of sports on cable if they play their cards right.

 

[doctornick]

It's just hard to imagine they'd want to spin-off/sell something that makes them a ton of profit, and has long-term potential as a huge profit generator in streaming.

Yeah, I think ESPN+ now falling under the ESPN umbrella is the big thing here. Instead of being managed by the streaming folks, it will be controlled by the sports programming people. I think the idea is to integrate linear and streaming better to maximize both and to help with the inevitable shift of more live sports to exclusively streaming.

Other streamers are falling all over themselves to get more sports on them but ESPN is better poised to make a viable, broad, profitable stand alone service in the future as an ultimate replacement for linear TV sports.

 

[GhostHost1000]

Bingo. ESPN could be the king of sports streaming just as it was king in sports on cable if they play their cards right.

and went back to focusing just on sports and being entertaining

 

[flynnibus]

It's just hard to imagine they'd want to spin-off/sell something that makes them a ton of profit, and has long-term potential as a huge profit generator in streaming.

But in the same vein... it's also something that largely exists on the back of huge licensing deals and lots of competition from DTC offers because in a Streaming world who needs distribution when Amazon, Youtube or just any number of people can bid now?

Is it the model going forward? Is it's true value as more a production service rather than a distribution partner? I don't know... but it does seem to be segment ready for big shifts. First it was the local cable network alternatives eating into big football and baseball... now you have tech giants in the mix too.

I think of it like theme parks in a sense... high investment, good rewards... but still crazy recurring investment needed to stay relevant. At what point do you take the money and run? Timing that could be tough...

 

[arich35]

How much longer do we have to wait for an expansion announcement mainly at AK

 

[doctornick]

How much longer do we have to wait for an expansion announcement mainly at AK

I wonder too, probably at the Destination D in the fall - but it would be nice to see something start now so it could theoretically be done by late 2025 to “compete” with Epic Universe.

No reason they couldn’t throw up some walls and start working on the Moana flume ride now. The PW footprint is just sitting unused.

 

[CastAStone]

How much longer do we have to wait for an expansion announcement mainly at AK

That’s not likely to happen on an earnings call IMO.

 

[Rteetz]

That’s not likely to happen on an earnings call IMO.

The Disneyland announcement or mention was a surprise in itself.

 

[Sirwalterraleigh]

Disney plans to cut 7,000 jobs and reward shareholders

Disney said it would cut 7,000 jobs from its global workforce, part of a multibillion-dollar cost-cutting initiative aimed at streamlining the company's operations in a period of media industry turmoil.

www.cnn.com

Lead story tonight

Go figure…this was all about the dividend. Expect the proxy fight to go away too? Good chance…Bob is negotiating behind the scenes for his ego.

It’s only bad for employees, fans, park customers…the “little people”

 

[Sirwalterraleigh]

The Disneyland announcement or mention was a surprise in itself.

It’s also nothing…and elaborate mall display

 

[Ghost93]

Disney/Pixar films have really not produced many "good", memorable villains of late. I mean not actual villains that are not just an overbearing family member, one's own inner demons, or fear itself.

Mother Gothel was the last real Disney villain almost 13 years ago. Everything since has been twist villains, personal doubt or generational trauma.

 

[SteamboatJoe]

Mother Gothel was the last real Disney villain almost 13 years ago. Everything since has been twist villains, personal doubt or generational trauma.

Or reformed/saved at the end or manifestation of mankind's failings.

 

[hopemax]

I've been too busy with work today to listen myself to the data... so pardon if these are obvious answers...

They are setting ESPN up as it's own division... but the other broadcast networks, TV, media, etc is going where? Disney Entertainment?

How is this NOT setting ESPN up for spin-out/sale?

I don't know about Disney's intentions, but from my POV it adds transparency to ESPN's contribution to revenue and profit when it's its own line item. We've always hated the way the Parks have to cover for bad Studio performance and I don't see how that doesn't get worse in an ESPN-less Disney. As long as ESPN is a solid positive, as long as ESPN+ has steady growth... it's not the biggest issue. I got the sense, that in a way that ESPN might be looking to go back to it's roots a little and become a broader sports distributor, which the more established they became, gave way to the time taken up by the Big Four sports and related studio shows. For example investment in International sports rights, as they've done with soccer, might add up to a better investment and a more stable subscriber base than participate in the bidding wars for the most popular US sports.

 

[fgmnt]

It would almost certainly have an IPO with some PE potentially taking sizable stakes.

Hearst of course has a ROFR for the 80% that TWDC owns too which complicates any sale of any kind.

I wouldn't discount the chances of a spin off in 10-20 years but the fantasy spun by the jokers in industry press that a sale would happen is just that, fantastic.

 

[Sirwalterraleigh]

I've been too busy with work today to listen myself to the data... so pardon if these are obvious answers...

They are setting ESPN up as it's own division... but the other broadcast networks, TV, media, etc is going where? Disney Entertainment?

How is this NOT setting ESPN up for spin-out/sale?

I don't know about Disney's intentions, but from my POV it adds transparency to ESPN's contribution to revenue and profit when it's its own line item. We've always hated the way the Parks have to cover for bad Studio performance and I don't see how that doesn't get worse in an ESPN-less Disney. As long as ESPN is a solid positive, as long as ESPN+ has steady growth... it's not the biggest issue. I got the sense, that in a way that ESPN might be looking to go back to it's roots a little and become a broader sports distributor, which the more established they became, gave way to the time taken up by the Big Four sports and related studio shows. For example investment in International sports rights, as they've done with soccer, might add up to a better investment and a more stable subscriber base than participate in the bidding wars for the most popular US sports.

The smart play is to pump up ESPN…then dump it while it still has perceived value…

In the future all sports broadcasts other than perhaps the nfl will be direct to consumer…which leaves national sports networks obselete.

ESPN has sucked for 15+ years anyway

 

[Sirwalterraleigh]

How much longer do we have to wait for an expansion announcement mainly at AK

…not reading the tealeaves are you?

 

[Sirwalterraleigh]

Well it just wasn't the same without constant talk of "robust content pipelines", "strategic pillars," "Genie+", and "Yield Management."

I kid

I didn't like everything that was said, but listening to Iger is infinitely better than Chapek.

Definitely more Polish…

But still the same basic misunderstanding of why Disney works and what it takes to keep it going