Disney’s Q2 FY23 Earnings Results Webcast

[Sirwalterraleigh]

Whether it is tomorrow or 18 months from now they definitely need to figure out who is going to replace him and that person needs to have a vision and move the company forward/past the current regime - can't have another Chapek situation

Well, Max…we go back along way (whether you realize it or not…like rteetz )…and I’ve never for a second had any urge to trust what he says.

He has had a lot of success by Wall Street standards…but a mixed bag by “Disney standards”

I think his ego hurt so he executed 66 on Slaphead…but he didn’t plan on leaving in 2 years

I’ve seen this fish before.

But If his ego isn’t boosted…he may need “family time”…again…

 

[Sirwalterraleigh]

Which was the whole point, just follow the consumer to where they’re going.

Cable you were captive…whoever’s truck on your street was your option

Price wars are a different animal. A big dog like Amazon or apple or google could put another out of business for poops and grins and not sweat it

 

[the.dreamfinder]

Cable you were captive…whoever’s truck on your street was your option

Price wars are a different animal. A big dog like Amazon or apple or google could put another out of business for poops and grins and not sweat it

Google has YouTube, the monopoly on ad supported user generated video, and tried and failed at an SVOD service and settled for ad-free and OTT. Amazon doesn’t even know what it wants to be, prestige or four quadrant, and until recently was content burning stacks of cash on questionable projects and show runner deals. Apple has a pretty good service, but it’s a successful HBO style prestige service that’s just an add on to their service bundles.

Netflix is still the cash cow, for now. I read someone say that the biggest legacy of the streaming wars is that Netflix, or any player for that matter, will NOT have a monopoly on SVOD like YouTube in its vertical because all the legacy and tech companies competing services killed the possibility for Netflix to be the aggregator.

 

[the.dreamfinder]

If anyone wants to learn more about the Asian streaming and media landscape, inclusive of India, here’s a great interview from the Ankler with Asian media analyst Vivek Couto from last fall. They spend a good bit of time talking about Disney’s options in the India streaming market.

The Asian Market in 45 Minutes

Vivek Couto on the overseas war being waged between Amazon, Netflix and Disney

open.substack.com

 

[MisterPenguin]

Focusing on parks, WDW was down in Q2 and seemingly will be soft in Q3. MK just opened a new “e-ticket” attraction yet it doesn’t seem to be a draw for people.

Huh?

The decrease at Walt Disney World Resort was due to higher costs, partially offset by increased volumes. Higher costs reflected cost inflation, increased expenses associated with new guest offerings and higher depreciation. ​

 

[Sirwalterraleigh]

Google has YouTube, the monopoly on ad supported user generated video, and tried and failed at an SVOD service and settled for ad-free and OTT. Amazon doesn’t even know what it wants to be, prestige or four quadrant, and until recently was content burning stacks of cash on questionable projects and show runner deals. Apple has a pretty good service, but it’s a successful HBO style prestige service that’s just an add on to their service bundles.

Netflix is still the cash cow, for now. I read someone say that the biggest legacy of the streaming wars is that Netflix, or any player for that matter, will NOT have a monopoly on SVOD like YouTube in its vertical because all the legacy and tech companies competing services killed the possibility for Netflix to be the aggregator.

The point was…they are NOT gonna sustain ripping people off at $50 a month. That’s not sustainable.

First…a lot of the original IP of Disney plus from 2018 is faltering and/or being exploited…

But the larger point is the tech and delivery doesn’t allow the “rebirth” of the trapped cable bundling. The world is smaller now.

My analogy about big tech is just highlighting that there are way bigger dogs in the alley than have only dabbled…not committed to this point.

I also think Disney is bought. It’s inevitable. I think 10 years is likely and 5 wouldn’t be shocking.

Bob wanted them to be a content house…not a products company…
So he fattened them up as a nice tidy, snack

 

[mikejs78]

Everyone who is talking about the death of streaming and the failure of Disney+ is not looking at this right. This was actually a pretty good earnings report that the street reacted to strangely. Disney's fundamentals in streaming actually look among the best in the industry right now. I think the market is under valuing Disney right now.

One earnings report does not define a company or a CEO.

 

[Sirwalterraleigh]

Everyone who is talking about the death of streaming and the failure of Disney+ is not looking at this right. This was actually a pretty good earnings report that the street reacted to strangely. Disney's fundamentals in streaming actually look among the best in the industry right now. I think the market is under valuing Disney right now.

One earnings report does not define a company or a CEO.

You’re telling yourself what you want to hear on multiple fronts:

1. No one…that I can find…has predicted the death of Disney plus or streaming.
What people including this schmuck has said is it isn’t going to be a huge profit engine because streaming services have such huge costs to maintain to effective fight natural burn rate. That is an industry thing and fandom dismisses it as if the same problems aren’t gonna happen for Disney. Incorrectly.
2. This doesn’t “define” a company or quarter…but they’re down in a still “boom” scenario that isn’t looking good. We are always literally 24 hours from a massive recession at all times now. Not good.
Disney has also underperformed for 2 years strong

And as far as the ceo goes…look at the stock price on 11/18/22 when moves “had to be made” and look at it now.
Has it worked at all?
Nope

 

[BlakeW39]

Disney has also underperformed for 2 years strong

Deserved

And as far as the ceo goes…look at the stock price on 11/18/22 when moves “had to be made” and look at it now.
Has it worked at all?
Nope

And I pray to God that next time they choose someone better than Bob...either one of them.

 

[Elijah Abrams]

I’m trying to figure this out: Even though Hulu will remain separate, but all (if not, most) of its originals and available shows and movies, including the ones Disney owns, will also come to Disney+ (in North America; like the international version), is there still a chance the Hulu service itself will end up getting sold off? Comcast is more guaranteed to manage Hulu’s Live TV operations better than Disney itself, I believe. Everyone also likes Hulu, and would hate to see the actual streaming service get shut down, so I would disagree on having it close down.

Also, If they decide to remove content and cut back on new content, then I still believe Disney should sell the acquired Fox IP they currently have.

 

[CastAStone]

Iger says Disney will be "surgical" on deciding which content gets pulled from streaming services.

Seems like they're trying to tell creatives "No, we're not going Zaslav's route." Whether that's true remains to be soon.

That said, I wouldn't be shocked if the majority of content getting pulled are shows or movies Disney doesn't actually own (Diary of a Future President, the Animaniacs reboot, The Right Stuff and the like).

I hope that’s not the case. Bluey, which they license, is by far their most popular series.

Iger was referring to not making more of certain content, not actually pulling stuff down that’s already there. Sure some stuff that’s licensed will eventually expire and not get renewed but that’s mostly a Hulu problem.

In any case, don’t confuse ownership of the underlying property with ownership of the distribution rights. Disney owns the US TV/VOD rights to Bluey even though they don’t make it. It’s not going anywhere. Same situation actually for most Disney Jr shows. And shows for small children are huge loyalty drivers for streamers. I can separate myself from Netflix knowing that I can reup to watch stranger things in 2025, but can I really tell my 3 year old he can no longer watch his favorite show, PJ Masks whenever he wants? Much harder to do.

 

[CastAStone]

I’m trying to figure this out: Even though Hulu will remain separate, but all (if not, most) of its originals and available shows and movies, including the ones Disney owns, will also come to Disney+ (in North America; like the international version), is there still a chance the Hulu service itself will end up getting sold off? Comcast is more guaranteed to manage Hulu’s Live TV operations better than Disney itself, I believe. Everyone also likes Hulu, and would hate to see the actual streaming service get shut down, so I would disagree on having it close down.

Also, If they decide to remove content and cut back on new content, then I still believe Disney should sell the acquired Fox IP they currently have.

Iger was VERY cagey about this and there’s nothing to understand yet. They either haven’t decided what they’re doing or aren’t done negotiating terms yet.

 

[CastAStone]

Over 5 million people in India dropped D+ because Disney didn't spend hundreds of million to secure Cricket rights.

The ARPU (Average Revenue Per User) of D+ (Hotstar) subscribers in India is 60 cents. That's right, $0.59 per subscriber.

No wonder Bob and Christine signaled that India is going to be written off.

And now Wall Street, which has declared they don't care about subs, but only profits, sees that D+ losses have significantly declined and are truly on the way to being profitable, decide to go ahead and tank DIS stock because: They're looking only at the subs.

Not enough eye rolls are available in this universe.

(Mando voice) This is the analysis.

 

[Slpy3270]

Iger was referring to not making more of certain content, not actually pulling stuff down that’s already there.

Uhh....where do you think those $1.5-$1.8 billion in impairment charges are coming from? Not just third-party content. In-house content is certain to be caught in the crossfire.

Some content Disney produced and owns is almost certain to get pulled. Think Willow, National Treasure, Y: The Last Man, Big Shot, shows that never really went anywhere. Question is whether or not they're gone forever (as in Disney can no longer legally do anything with them anymore lest they start paying taxes for them again) or they get licensed out to other streamers/networks/home video.

 

[Sirwalterraleigh]

Iger was referring to not making more of certain content, not actually pulling stuff down that’s already there. Sure some stuff that’s licensed will eventually expire and not get renewed but that’s mostly a Hulu problem.

In any case, don’t confuse ownership of the underlying property with ownership of the distribution rights. Disney owns the US TV/VOD rights to Bluey even though they don’t make it. It’s not going anywhere. Same situation actually for most Disney Jr shows. And shows for small children are huge loyalty drivers for streamers. I can separate myself from Netflix knowing that I can reup to watch stranger things in 2025, but can I really tell my 3 year old he can no longer watch his favorite show, PJ Masks whenever he wants? Much harder to do.

That’s how I interpret it…
He’s basically saying they’re gonna slash more production costs…not like pulling episode 176 of the Simpsons

 

[Sirwalterraleigh]

Uhh....where do you think those $1.5-$1.8 billion in impairment charges are coming from? Not just third-party content. In-house content is certain to be caught in the crossfire.

Some content Disney produced and owns is almost certain to get pulled. Think Willow, National Treasure, Y: The Last Man, Big Shot, shows that never really went anywhere. Question is whether or not they're gone forever (as in Disney can no longer legally do anything with them anymore lest they start paying taxes for them again) or they get licensed out to other streamers/networks/home video.

…I can answer that…

Nobody wants that crap if they give it away for free

 

[Slpy3270]

…I can answer that…

Nobody wants that crap if they give it away for free

Might explain why reruns on Jerry Springer and Maury aren't on Peacock, but instead are on a service called Nosey.

 

[Trauma]

So who here is excited for new high quality D+ content Bob is promising?

I’m so excited I’m hoping for a price increase so I don’t hyperventilate.

 

[MagicHappens1971]

So who here is excited for new high quality D+ content Bob is promising?

I’m so excited I’m hoping for a price increase so I don’t hyperventilate.

What have they put out on D+ that hasn’t been “high quality”?

 

[flynnibus]

What have they put out on D+ that hasn’t been “high quality”?

She Hulk...