So now we’re just making stuff up.
Disney will merge Disney+ with Hulu soon. The bundle will be the only option and you won’t be able to purchase the services individually. Bob Iger and Hugh Johnston have confirmed this. And, as you can see in the data below, that combination is quite competitive in the marketplace in terms of customer retention. It’s basically tied with Netflix.
Yes, Disney had much better overall management 10 years ago and before. Iger was a lot better for one. Remember, Iger wasn't horrible and I've commended him for that. He became horrible as Disney got more and more political, the parks were ignored, prices increases, ridiculous movies, poor Disney+ rollout, and the push for smartphone driven experiences at Parks.So you are saying that in 2017 they had fantastic management?
What about 2021, when Disney’s stock price was at an all-time high (up 330% over 10 years), and their free cash flow was a fraction of what it is now.
All of these measurements are divorced from whether the company has good management. These are small snapshots in time and they tell you nothing about the company’s management.
Over the past 5 years the company navigated a pandemic that, due to circumstances beyond their control, had an outsized effect on their business compared to their competitors and the rapid collapse of their entire industry’s business model due to significant changes in consumer preferences. Do you place no value on these headwinds whatsoever?
If you are so confident that Disney is poorly managed, am I to assume that you are shorting the stock?
My goodness. A movie flopped
That never happens!
/s
When a company produces a movie that flops, you immediately rush to the conclusion that they have horrible management? What about vice versa?
Inside Out 2, Deadpool and Wolverine, Lilo and Stitch. Fantastic management, right?
'Inside Out 2' Becomes the Highest-Grossing Animated Film of All Time Globally - The Walt Disney Company
"Inside Out 2" is now the highest-grossing animated film of all time, surpassing "Frozen II" as the top animated film ever.thewaltdisneycompany.com
‘Deadpool & Wolverine’ Breaks Box Office Records with Largest R-rated Global Opening Ever - The Walt Disney Company
It was a record-breaking box office weekend for Marvel Studios’ "Deadpool & Wolverine," which stars Ryan Reynolds and Hugh Jackman.
‘Lilo & Stitch’ Shatters Box Office Records with Massive Global Debut - The Walt Disney Company
"Lilo & Stitch," the live-action reimagining of the 2002 animated classic, opened as the No. 1 film around the world, shattering box office records.
There are so many false assumptions you are making here.
Disney has always adapted and responded to cultural shifts in order to remain relevant. A company has to walk a tight rope between brand legacy and modern social expectations from customers and employees.
The parks are doing incredibly well financially. Far, far better than Universal, which has seen 8 straight quarters of attendance declines in their domestic parks.
In an era of high inflation and significant travel demand. Much of the “price increase” has come from Lightning Lane, which is an optional purchase catered to those willing and able to sacrifice money for extra time.
There have always been films that are “ridiculous.” Some of them do well, others do not. This is the nature of the film industry. Again, it doesn’t help that the company massively increased their volume of content to feed the launch of the streaming service (again, a necessary decision) which inevitably resulted in a decrease in quality.
This is revisionist history and absolutely absurd.
I beg to differ. A profitability pivot was necessary, but the Disney+ rollout achieved the distinction of the fastest any streaming service has reached 100 million subscribers. Looking back, I wouldn’t have changed much at all about the rollout. I certainly wouldn’t call it “poor.”
You mean booking Lightning Lanes on your phone as opposed to walking half way across the park to the FastPass Distribution kiosk to see about the possibility of nabbing a FastPass?
Not in the short-term. There’s been significant macroeconomic headwinds that have disproportionately affected the company. Have you noticed?
We’ll see about that
Only everyone disagrees with you, but other than that, solid analysis.There are so many false assumptions you are making here.
Disney has always adapted and responded to cultural shifts in order to remain relevant. A company has to walk a tight rope between brand legacy and modern social expectations from customers and employees.
As the political and cultural winds have shifted significantly lately, you’ve seen many companies recently, including Disney, refrain from bringing attention to certain culturally/politically sensitive topics. Of course, Iger himself said “Disney’s mission is to entertain, not promote messages.”
The parks are doing incredibly well financially. Far, far better than Universal, which has seen 8 straight quarters of attendance declines in their domestic parks.
$30 billion in domestic park capex between 2024-2033 is not “ignoring” the parks business.
In an era of high inflation and significant travel demand. Much of the “price increase” has come from Lightning Lane, which is an optional purchase catered to those willing and able to sacrifice money for extra time.
Lightning Lane also significantly improves the ROI on new attractions, which is why we are getting so much investment in new experiences.
There have always been films that are “ridiculous.” Some of them do well, others do not. This is the nature of the film industry. Again, it doesn’t help that the company massively increased their volume of content to feed the launch of the streaming service (again, a necessary decision) which inevitably resulted in a decrease in quality.
This is revisionist history and absolutely absurd.
I beg to differ. A profitability pivot was necessary, but the Disney+ rollout achieved the distinction of the fastest any streaming service has reached 100 million subscribers. Looking back, I wouldn’t have changed much at all about the rollout. I certainly wouldn’t call it “poor.”
And, of course, due to Disney’s strategy of going for massive subscriber scale first (which is critical for a streaming service) they have turned a $4 billion loss per year into a $1 billion profit in a very short amount of time. Many investors were uncomfortable with the excessive spending, but it was 100% necessary.
You mean booking Lightning Lanes on your phone as opposed to walking half way across the park to the FastPass Distribution kiosk to see about the possibility of nabbing a FastPass?
Or Mobile Order so I don’t have to wait in line when I already know what I want?
Not in the short-term. There’s been significant macroeconomic headwinds that have disproportionately affected the company. Have you noticed?
We’ll see about that
I don’t put faith in anyone else’s opinion, and neither should you, but I wouldn’t say I’m alone.
I agree that the stock’s 10 year performance is poor. We just disagree as to why that is the case.
When making investment decisions, you wait until the stock is up before you invest?
Results. Again, stock says you're wrong. Who cares what analysts think. Analysts are analysts because they can't pick stocks. Everyone on Wallstreet knows that.
Ask yourself why Disney is worth less than half of NFLX with similar earnings. All earnings aren't the same.
Dividend are relevant, if they weren't Disney wouldn't have made such a big deal about bringing them back. I would much rather have money returned to me to invest as I see fit than have a company squander it on god knows what, or simply sit on the money the way Apple has for years by offering ridiculously small dividends while they just horde cash.
Well, I initiated a position in DIS 2 months ago at an average cost of $84/share. Since then, the position has gained about 42%, while the S&P has gained a fraction of that…
You don't seem to understand what value is. If a company gives me some of the cash they have, that's value. I can't reinvest it by buy more of the stock in that company or invest it in anything else.. at the end of the day I have more money to work with when I get dividends than when a company does an Apple and just hold on to the cash as if there is some grand plan that requires them to hold the money and very often do absolutely nothing with it. The reality is comcast has done better than Disney during the period the OP brought up. Drop the same cash in both at the start time of the OP and you would be much happier as a comcast holder than a disney shareholder. The math doesn't lie.
My original post was what was the better deal Fox minus Sky or just Sky. I think both deals were bad deals. An interesting part of the deal is that Disney paid about 9 billion to Comcast for 1/3 of Hulu while Comcast paid about 19 billion to Disney for 40% of Sky. So which company would you rather own, Sky or Hulu? Personally given the Sky losses and 8 billion write down? I would rather have Hulu.
