Disney Posts Mixed Earnings $1.58/share on Rev of $14.24B

Andrew C

You know what's funny?
Yeah, I hardly watch Netflix or Amazon Prime and DirecTV Now got off to a rocky start but I got Go Big (100+ channels) and free HBO for $35 a month so I stuck with it. Now, it's a pretty solid platform on an Apple TV and the resolution is incredibly high - even better than HD cable was. They keep adding more channels, are working on adding all the local networks, a cloud DVR is in beta, and 4K video is planned. I have a feeling AT&T is going to be a force to reckon with over the next couple of years when it comes to streaming video and cord cutting.

Yeah. I got an email about the beta test for dvr. I signed up so hopefully I get selected. And they finally made a deal with CBS.
 

Laketravis

Well-Known Member
Yeah. Their whole new att video platform or whatever it's called. If I don't get selected it comes out this fall anyways.

From the screen shots I've seen it's killer. And that's exactly why I'm thinking if Disney wants to venture into their own video streaming service, they are going to have to "Go Big". Otherwise, their offerings will look lame no matter what the content is. People are just as sensitive about GUI's and navigation as they are the content they are watching.
 

Riddick

Member
To be fair Disney already has a streaming service in the UK - https://disneylife.com/
Though it tends not to have the latest releases until they've been out on Blu-Ray for a while it does have a pretty comprehensive selection of movies and TV shows. You can also stream the UK Disney channels live through it and download content for offline viewing.
 

ford91exploder

Resident Curmudgeon
Just keep in mind the context of the earnings call. Disney had it's first drop in revenue and operating income in 8 years.

Disney CFO Christine McCarthy answered the question exactly as she should have.

Respectfully I disagree, The P&R strategy for the last decade has been quality cuts, attraction closures and price increases i.e. margin improvements.

The cuts in DVC quality and service in the past 2 years have me on the verge of selling my DVC.

DVC should operate independently because we the members are paying yet MF increases in some cases by double digit percentages and quality and service drop like a rock.

Some of us actually visited WDW for the resort experience not to see how many rides we can do so the resorts are more than a place to rest ones head. So the quality cuts at the parks and DVC resorts are a double whammy

I think this will be the first of many earnings misses. For the simple reason Iger has grown PROFIT he has not grown or diversified the business. And he has completely missed the new media wave.
 

ford91exploder

Resident Curmudgeon
From the screen shots I've seen it's killer. And that's exactly why I'm thinking if Disney wants to venture into their own video streaming service, they are going to have to "Go Big". Otherwise, their offerings will look lame no matter what the content is. People are just as sensitive about GUI's and navigation as they are the content they are watching.

They do need to go big or go home, unfortunately they are listening to Jack Dorsey who cant figure out how to make a profit with one of the most popular services on the net.

But is it popular only because its free???
 

Laketravis

Well-Known Member
To be fair Disney already has a streaming service in the UK - https://disneylife.com/
Though it tends not to have the latest releases until they've been out on Blu-Ray for a while it does have a pretty comprehensive selection of movies and TV shows. You can also stream the UK Disney channels live through it and download content for offline viewing.

Looks like it also supports a fair amount of user devices. Can't comment on the interface but did note it requires Silverlight, something that might be perceived as a negative by the more technical crowd.
 

ford91exploder

Resident Curmudgeon
  1. If there was a single streaming service, what Netflix wants to be, it would be much more than $10/month. Like $30+/month. Netflix's stock price has the expectation of considerable price increases baked in.
  2. Netflix doesn't share viewership data with producers like Disney. At what point do you want to be in business with a partner who won't tell you how many people watch your shows and films?
  3. The Disney Channel suite is one of the main reasons why a large subset of consumers still subscribe to cable. Why not price it like a premium cable channel like HBO and sell it directly to consumers.
In case anyone's curious, here are the services I use and how I use them.

Amazon Prime Instant Video (annual)
Netflix (monthly, considering cutting off when not using)
Hulu Plus (currently off, monthly)
FilmStruck (annual)
HBO (cable)

For me

1 - Hulu Plus with ad free upcharge
2 - Amazon Prime
3 - DirectTV
 

Riddick

Member
Looks like it also supports a fair amount of user devices. Can't comment on the interface but did note it requires Silverlight, something that might be perceived as a negative by the more technical crowd.

I've gotten on with it quite well, though it's not quite up to the Netflix standard. I've not really used the web interface all that much as it supports Google Chromecast so I can send everything straight to my TV!
Didn't Netflix require Silverlight until not that long ago when they finally moved over to HTML5?
 

Laketravis

Well-Known Member
I've gotten on with it quite well, though it's not quite up to the Netflix standard. I've not really used the web interface all that much as it supports Google Chromecast so I can send everything straight to my TV!
Didn't Netflix require Silverlight until not that long ago when they finally moved over to HTML5?

They did, and I've heard DirecTV Now does as well but it's also being written out with the development of their new app to be released this fall. I'm not highly familiar with the pitfalls other than grumblings from techies that it's an end-of-life technology.
 

Kingtut

Well-Known Member
I don't personally have all of them (just DirecTV Now, Amazon Prime, and Netflix) but yes - currently the big aggregators offer many of the same "channels". But if content providers start to determine they want to stream their own content directly rather than license it thru third parties then it could reach the point of having to subscribe to a ridiculous number of separate streamers to obtain what for the most part today is aggregate content.

In fact, many of them are already setup with their own direct streaming apps. Suppose they pulled out of shared licensing agreements with the aggregators and you had to go straight to their app for content. On one hand, true a la carte programming is born. On the other, you may need to subscribe to 20 different individual content providers.
Don't forget that each of those 20 will want to charge you as much as ( if not more) than you already pay as part of a bundle. I'm concerned that Disney is late to the party and will bring their usual arrogance in terms of pricing it. Will many people be willing to pay more than the Netflix price for a monthly subscription to Disney or ESPN? In the real world I don't think so ( but here on these forums the numbers are of course skewed in Disney's favor) If it was reasonably priced I could see it lasting ( note I am not saying successful depending on how much money Burbank is expecting) Buying a delivery platform is only one step in creating a compelling reason for people to pay for this service
 

Riddick

Member
They did, and I've heard DirecTV Now does as well but it's also being written out with the development of their new app to be released this fall. I'm not highly familiar with the pitfalls other than grumblings from techies that it's an end-of-life technology.

A quick bit of googling suggests that Silverlight is largely unsupported in newer browsers like Chrome or Firefox as it uses an old Netscape plugin interface as opposed to newer standards. You can re-enable support for it but it's not really the seemless experience you'd hope Disney (or others) would want to present.
I'd imagine they'll move over to HTML5 soon-ish as Microsoft announced end of development for Silverlight in 2013 with a view to complete retirement in 2021.
You'd assume this fancy new Disney streaming service would be HTML5 straight out of the box and support everything (except maybe Windows Phone...) as they'd be daft not to!
 

asianway

Well-Known Member
Anyone listen to the call? I know they said DLP revenues were up, but was their attendance? Or no mention?

thanks
 

jt04

Well-Known Member
You're fast :)

Parks was up substantially in both revenue (12%) and net operating (18%). Big drops in Cable and Media (23% drop in net operating) account for the revenue drag.

Now that Iger has fixed P&R and animation and Live action and merchandise, he now has found the solution for ESPN and content distribution.
 

Laketravis

Well-Known Member
Now that Iger has fixed P&R and animation and Live action and merchandise, he now has found the solution for ESPN and content distribution.

It will certainly be interesting to see how that plays out. If it's successful, there are others who may consider the same model. If it fails, well.......
 

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