Disney’s Q2 FY23 Earnings Results Webcast

[Casper Gutman]

So can we talk about Zelda?

David Zaslav did not make Zelda.

You can give it another chance.

I’ve played 4 or 5 Zelda games to the end and tried another 2 or 3. The modern iteration just isn’t my thing. I’m not big on running through fields, either in games or in real life (that’s why I go to theme parks!)

I’m happy that others enjoy them. My favorite game of the last decade is Disco Elysium, which is unlikely to become a blockbuster film franchise.

 

[Trauma]

I’ve played 4 or 5 Zelda games to the end and tried another 2 or 3. The modern iteration just isn’t my thing. I’m not big on running through fields, either in games or in real life (that’s why I go to theme parks!)

I’m happy that others enjoy them. My favorite game of the last decade is Disco Elysium, which is unlikely to become a blockbuster film franchise.

My favorite game was Elden Ring.

I will see if that changes after I’m done with Tears of the Kingdom.

 

[Casper Gutman]

A series that hasn’t been made is worse than the fifteen or so awful remakes that already exist to critical and creative disdain. You make a lot of sense, Fat Man.

The cheaper the crook, the gaudier the patter.

 

[TalkingHead]

The cheaper the crook, the gaudier the patter.

That’s ok, Disney’s rocky future, Marvel’s gradual decline, Iger’s running out the clock, it’s the stuff dreams are made of.

 

[Elijah Abrams]

I feel like Disney would be fine if they sold most of Fox and keep National Geographic and a few classic movies.

Fox only exists now has a few studios fully integrated into TWDC. There is no "Fox Company" within Disney's corporate structure to sell off.

This would be like saying that Disney can make up a few bucks by selling off Marvel or Pixar.

And Disney wouldn't be getting back the full price they paid for Fox because they're using Fox's infrastructure in Europe for D+. And they sold off a lot of other Fox enterprises... leaving only a few studios.

And those studios are complementing Disney's "family entertainment" (children) with "general entertainment" (adults). And they bring in prestige awards that the family entertainment never could (except for mostly cornering 'best animation.')

Since that Fox doesn’t exist, I feel like Disney would be fine if they put 20th Century Studios, FX, Searchlight Pictures, and 20th Television in one separate unit from Disney’s film/TV unit, and then sold off the former unit, including that unit's IP.

 

[Joel]

Since that Fox doesn’t exist, I feel like Disney would be fine if they put 20th Century Studios, FX, Searchlight Pictures, and 20th Television in one separate unit from Disney’s film/TV unit, and then sold off the former unit, including that unit's IP.

Everybody drink!

 

[Elijah Abrams]

Everybody drink!

What does that mean? Did I make up a great idea?

 

[MagicHappens1971]

Since that Fox doesn’t exist, I feel like Disney would be fine if they put 20th Century Studios, FX, Searchlight Pictures, and 20th Television in one separate unit from Disney’s film/TV unit, and then sold off the former unit, including that unit's IP.

This is not happening. I don’t know why you are so stuck to it.

 

[Trauma]

Since that Fox doesn’t exist, I feel like Disney would be fine if they put 20th Century Studios, FX, Searchlight Pictures, and 20th Television in one separate unit from Disney’s film/TV unit, and then sold off the former unit, including that unit's IP.

I think what people are wondering is what’s your fascination with the Fox stuff?

It’s not that it’s wrong to be interested in, it just seems like a random component to be hyper focused on.

Maybe talk about something else once in awhile.

Do you like Zelda?

 

[WaltsTreasureChest]

This is not happening. I don’t know why you are so stuck to it.

Iger coming back wasnt happening.. UNTIL IT WAS

 

[MisterPenguin]

Are they actually planning to pull out of India (ooh matron) altogether or just not invest over $3 billion for Cricket rights that doesn’t bring any returns?

I'm not sure they'll pull out all together, but, if the new rule is: Our investment must make a return... then I can't see them putting any more effort into the India market. The return of an ARPU of 60 cents wouldn't justify millions spent on content or cricket rights. In fact, they passed on the cricket rights because they thought it was to expensive (and it was). And in thanks, 6 million Indians dropped their D+ subs.

Keep in mind, over the past few quarterly calls, both Bobs have been throwing a flag on certain sports rights in the U.S. as being too expensive, even for ESPN/ESPN+.

 

[Casper Gutman]

OK, OK, hear me out. Maybe Disney can’t sell Fox… But what if they sold PARAMOUNT?!?!



…RKO?

 

[Disgruntled Walt]

OK, OK, hear me out. Maybe Disney can’t sell Fox… But what if they sold PARAMOUNT?!?!



…RKO?

I'd like it if Disney sold Zootopia. Then they wouldn't be able to retheme Dinosaur.

 

[Trauma]

I'd like it if Disney sold Zootopia. Then they wouldn't be able to retheme Dinosaur.

Then they need to invest in bringing Dinosaur back to life. It was in horrible shape last time I rode it.

 

[CaptainAmerica]

…RKO?

 

[bmr1591]

I'm not sure they'll pull out all together, but, if the new rule is: Our investment must make a return... then I can't see them putting any more effort into the India market. The return of an ARPU of 60 cents wouldn't justify millions spent on content or cricket rights. In fact, they passed on the cricket rights because they thought it was to expensive (and it was). And in thanks, 6 million Indians dropped their D+ subs.

Keep in mind, over the past few quarterly calls, both Bobs have been throwing a flag on certain sports rights in the U.S. as being too expensive, even for ESPN/ESPN+.

For a country of over 2 billion people, to have 6 million leave is such a small amount. It really shows how well D+ was/is doing in the country. That's a drop in the bucket of the potential they could have reached there. With that said, have any of you been to India? I have. Even the major cities are stricken by a poverty pandemic. Indians spend time to save money, of which most have little. I see the potential of a major market, but their entire socioeconomic situation would need to change before it became a viable one to heavily invest in, much less build a park in.

 

[CastAStone]

10-Q is up!

Highlights!

Domestic hotel occupancy

Domestic Hotel Occupancy	2019	2020	2021	2022	2023
Q2 (Jan-Mar)		77%	35%	84%	89%
Q3 (Apr-Jun)		0%	50%	90%
Q4 (Jul-Sep)		~5%	~55%	~82%
Q1 (Oct-Dec)	92%	28%	73%	88%

Every part of the parks and resorts division is doing well. Resorts and vacations is Disney hotels plus cruises plus ABD

Linear networks are getting clobbered, I can’t recall ever seeing it this bad. It will be interesting to see in the future when ESPN gets broken out of this.

Is Hulu developing a viewership problem? See footnote:

OTOH, Hulu remains their only profitable DTC, if I’m reading this correctly.

Anyway good week to be Josh D’Amaro. To me, these parks results look great and are driving the company.

 

[Trauma]

Disney Analyst Downgrades Stock Due to “Risky” Streaming Sub Forecasts, “Deteriorating” Linear TV

Wolfe's Peter Supino moves from an "outperform" to a "peer perform" rating, citing "cognitive dissonance."

www.hollywoodreporter.com

 

[CastAStone]

Disney Analyst Downgrades Stock Due to “Risky” Streaming Sub Forecasts, “Deteriorating” Linear TV

Wolfe's Peter Supino moves from an "outperform" to a "peer perform" rating, citing "cognitive dissonance."

www.hollywoodreporter.com

I don’t see the cognitive dissonance. Disney said “we spent a lot of money on a lot of different stuff to see what would work in streaming, we successfully identified what does and doesn’t work, and now we’re not going to spend money on the stuff that didn’t work anymore”. That’s literally how a business should operate.

He’s right about linear though.

 

[CaptainAmerica]

I don’t see the cognitive dissonance. Disney said “we spent a lot of money on a lot of different stuff to see what would work in streaming, we successfully identified what does and doesn’t work, and now we’re not going to spend money on the stuff that didn’t work anymore”. That’s literally how a business should operate.

He’s right about linear though.

Less content can't possibly equal more subs.

Maybe you can say "we identified what does and doesn't work" so that less content doesn't equal FEWER subs, but I'm not sure how it's supposed to mean more.