Disney Parks Revenue up

[larryz]

I agree with you on the parks however I am not sure you can say the movies are not at those same standards. Disney has been producing some high quality films as of late at least in the animation department.

Disney's film division is lightyears ahead of anyone else in the space. There is no way you can claim the studios are not being run as well or better than previous decades.

That's because I'm not -- my comment is that I like the films and the parks, and I wish the parks were being run to the same standards as they were in the 80's and 90's. That's why I chose the verb "run" in that second clause, but clearly I wasn't clear enough. My apologies for misleading you.

 

[larryz]

For shame! Are you implying that Avenger franchise is somehow more successful than Air Bud's?

Air Bud had a niche market, just like the Avengers franchise. Air Bud appeals to sports fanatics who own labrador retrievers, and the Avengers appeal to just about everybody else.

 

[wdisney9000]

Espn could broadcast through YouTube live tomorrow if they cared to... and have a world class broadcast. But they don't... because it's not the streaming itself that is the business differentiator. It's the contracts and how you monetize it.

Slightly off topic, but what is your take on YouTube demonetizing certain content providers? It seems odd to me. Wife and I watch a certain (very popular with appx 2 million subscribers) YouTube channel that reports on haunted places and myths. He recently posted a video about YouTube pulling his add revenue to due to his content not being "advertiser friendly". I would think that with 2 mil subscribers, you have a pretty captive audience that advertisers would want to reach.

 

[FullSailDan]

And no one wants to shop in a brick and mortar shopping location. People hate malls and lifestyle centers (like Disney just built in the swamps). They want Amazon drones to deliver everything.

This is mostly true but it's worth mentioning that retail is seeing a resurgence of brand specific stores as experience centers. Essentially retail is becoming more about marketing a specific brands product with the assumption most will buy it later online. The companies don't really care about the lack of sales, so long as they get foot traffic and people leave with a positive impression. Placed into the town center approach of combining a selection of mid-range restaurants (and a sprinkling of the lower side of high-end) and a few entertainment options, people are actually spending time and money in these types of places. Of course, long hallway malls, with big anchor department stores, are dead; have been for 5 years.

I'm still on the fence with the effectiveness of Disney Springs. If Disney can keep people coming there and can find reasons for people to move from one end to the other, then yes companies will have no problem paying the rent for the marketing aspect alone. Stores like the recently closed headphone and glorified i-accessories, will die a quick death. A hotel or two directly inside the springs, some "experiences" (Ice skating, live music, drone show), a few destination bars for adults (bars not dance clubs) and more things like Cirque would really pay off.

 

[Dead2009]

You apparently didn't read Craig Moffet's report that absolutely crushed media stock last week. It caused DIS to drop over 2% before the earnings were released today.

ESPN is a content creator. But 5 years ago the competition (think Twitter and Amazon) weren't streaming NFL games. They are now.

Hulu, Google (via YouTube), Netflix, Amazon, Apple and others are all making major investments in content creation. Like I told you a year ago. And a year ago you simply dismissed that statement. Your pithy response was "never gonna happen". Well it is happening and its happening right now.

Twitter streams the NFL Network broadcasts when they do stream football games sooo...

 

[flynnibus]

Slightly off topic, but what is your take on YouTube demonetizing certain content providers?

Sorry, I haven't really followed the subculture that is youtube personalities and the business there. I do know however, if someone else controls all aspects of your exposure, revenue, and customer list... you are pretty much at risk all the time. So people that rely on youtube for everything.. are powerless.

 

[flynnibus]

Twitter streams the NFL Network broadcasts when they do stream football games sooo...

stream(ed)

That deal is now replaced by the Amazon deal. NFL has been doing this in small tests. I mean, lets be real.. last year was the first live superbowl stream. That's because of the NFL.. not the networks. They are treating online differently from broadcast and have been VERY conservative and cautious about it. Frankly, the more they want to move international, the more important the streaming/PPV model will be. It's very common in Europe to pay for sports streaming/PPV to get access to the futball matches you want, etc.

 

[njDizFan]

Nice acquisition from ABC to get the rights for American Idol. What networks are learning is live television is what brings the eyeballs to the set. As we know Millennials wants to be able to live gram/tweet/FB what they are doing and anything in the past is old news.

Anecdotally hearing about the experiences of mall employees and managers locally, brick and mortar is dying. There is a subset of newer fashion retailers that are opening stores that do not keep their items in stock. They have 1 piece of apparel for sizing and feel but then will ship it to you, thus avoiding the inventory issues. It keeps a retail presence but avoids the downside of stocking and labor. I could see this as a trend. As it is now I see stores as showrooms for Amazon.

 

[ford91exploder]

The point being is the lack of streaming is not ESPN being some dinosaur... its not their choice to make. They have to license that separately and the NFL has only been throwing out crumbs at a time.

There proposition for a twitter is very different than another competitor. Every network has the ability to stream. Espn has been on non cable boxes for ages... and has been aggressive in the fantasy+app space as well. They are on virtually every iptv platform.

What someone like a twitter has to gain fromTNF is very different from someone like ESPN. Walking away from something is not always a bad thing. Especially when the NFL is playing micromanager.

The problem is ESPN CHOSE not to licence those direct to consumer righrs and now others have them and Disney simply does not have the skill or the toolset to compete in that space.

 

[Jimmy Thick]

Another earnings call, another big quarter for Disney and Iger.

Like clockwork.

The same tired posters make the same tired claims that never come true. Now people are comparing Disney, an entertainment giant, to the retail sector? Are people running out of creativity or ammunition?

Next thing you know people will start spreading rumors about Disney charging for a sit down toilet experience in the Magic Kingdom so Iger can get some kind of phantom bonus.

Tip tip.

Jimmy Thick- Time to watch some ESPN before it disappears...

 

[flynnibus]

The problem is ESPN CHOSE not to licence those direct to consumer righrs and now others have them and Disney simply does not have the skill or the toolset to compete in that space.

You just can't make up your mind... first it's ESPN is a dinosaur and isn't in the streaming game (wrong: they've actually been one of the early adopters). Then it's they aren't streaming their content like NFL games (they can't - streaming rights are not part of their broadcast rights). Now it's they don't have the skills or toolsets (wrong: they've had online only channels for years).

Verizon has had the rights mobile streaming rights for years and has it LOCKED UP (since 2010.. and in 2014 had to pay a billion for the next extension). Only recently has the NFL started letting some other NFL produced stuff be streamed... and those deals have been scraps the NFL is throwing out to test the waters.. in small increments and very limited.

What ESPN has not done is make premium content an a la carte offering outside of your cable subscription. That doesn't mean they haven't been in the streaming game or can't be. ESPN360 is more than 10 years old.

The 'ESPN isn't streaming XYZ league games' is not simply a topic of ESPN not thinking about streaming.

 

[Ralphlaw]

With ESPN and other media accounting for 3 times the operating income of the parks, is it any wonder that Iger's attention cannot be on an unimaginative Imagination Pavilion and a flaccid TTA narration?

Movies are huge, and the cruise ship capacity will soon grow by 50% (2 more ships in addition to the 4 we already have).

Also, Shanghai is obviously the greatest growth opportunity among the parks. IP acquisition and new projects (much of it IP based) will drive growth domestically among those parks, but that is still a relatively small percentage of the corporation's overall revenues and operating income.

Yup, we frequent these boards because our primary Disney focus is the big park in Orlando, yet that park accounts for less than 10% of the company's operating income. The parks also cost much more to operate in many ways along with far greater potential downsides such as lawsuits. Put another way, It takes a lot more hands-on work to make a dollar of profit at the parks than it does to make a dollar in most other segments. My love of Disney, and my reason for participating in these boards, arise from the parks (especially Epcot). Yet the real money for Disney comes from areas that few people are as passionate about. Again, is it any wonder that the thing we love is not given the corporate attention that we desire?

 

[Ralphlaw]

He can't he's making the same mistakes the railroad industry did in the 60-70's they thought they were in the RAILROAD business, not the TRANSPORTATION business. Disney thinks it's in the NETWORK business, It's not it's in the home entertainment business. .

I disagree. The "defining" of your business has been a fundamental exercise since the 80s and early 90s. Disney well knows that it is in the entertainment business--home entertainment and otherwise. Only an idiot on the board would be blind to the fact that the broadcast entertainment business is not only changing, but utterly transforming (if not disappearing). The recent ESPN layoffs made this abundantly clear. Obviously the line between Networks and unfettered distribution is blurred, but they are not locked in like a railroad, a print newspaper, a stage coach line, a postal service, or any other anachronistic industry.

 

[matt9112]

Shanghai is already profitable! We have come along way from when we were told Iger didn't have the skills or cultural sensitivity to make it happen. But even if he somehow did, it would be a complete boondoggle.

Yep, that was the claim.

And the CCP can legit sieze it all tommorow if they like.

 

[CaptainAmerica]

Let's be 100% clear about something very simple: cutting costs has absolutely nothing to do with "increased revenue."

 

[jakeman]

/checks website title

Nope, still not ESPNMagic.

 

[HauntedPirate]

"Disney expects to repurchase $9-10 billion in shares."

Just think of what they could do with that money instead of propping up the stock price...

 

[rob0519]

Iger was not happy with being asked about succession plans.

Other notes, Iger mentioned Disney is going to look to increase the length of stay and feels they have good leverage with their hotel rates.

Leverage with their hotel rates?? Ha!

 

[CaptainAmerica]

Leverage with their hotel rates?? Ha!

88% occupancy in a quarter with no Christmas and no Easter this year? Darn right leverage with hotel rates.

Keep in mind that "hotel rates" does not mean "rack rates." Rack rates are a shell game. Pricing leverage could be something as simple as "our usual 30% summer discount usually lasts 45 days but this year it'll only be 40 days and/or 25%."

 

[HauntedPirate]

88% occupancy in a quarter with no Christmas and no Easter this year? Darn right leverage with hotel rates.

Keep in mind that "hotel rates" does not mean "rack rates." Rack rates are a shell game. Pricing leverage could be something as simple as "our usual 30% summer discount usually lasts 45 days but this year it'll only be 40 days and/or 25%."

It sounds to me like Iger is admitting their hotel rates are high (Shocking, I know) but via discounts they believe they can entice guests to stay longer.