Disney's FY20 Q3 Earnings (8/4/20)

[AEfx]

Well...it’s on Disney + which is subscription based. You can’t exactly own D+.

Yes that’s why I put “own” in quotation marks, because it’s not clear how that would work - but the question remains - if you pay $30 for Mulan, does that entitle you to watch it for one or two days, as most previous VOD premieres like this, or does it become permanently available to your account. That makes a big difference in pricing.

As I said, if it is purchasing long-term access, versus a short rental, the pricing is actually rather reasonable within the confines of the (many would say overpriced to begin with) digital market. They charge $20 for new VOD films to rent, so $30 for permanent access would be seen as more of a “value”.

 

[Sirwalterraleigh]

Apparently. Revenue exceeds variable cost, though not as high as expected. Net positive.

Bunk...because this is a family forum.

Wdw makes profits running at full capacity 365 days a year...pretty simple

 

[Sirwalterraleigh]

The comments about Mulan are telling. I think they knew it wasn’t going to fair that well and are trying to score an “upset victory”

A “George Washington”

 

[TrainsOfDisney]

“Rolling it into a free offering” - Disney+ is not a free offering.

 

[MisterPenguin]

Q: International streaming launch under Star (and not Hulu). What's up? And here's Wall Streets push for more VoD. (sigh)

Bob: Hulu is not a international brand, but Star is. Star will be Disney+ international.

We're still committed to the theatrical window. But, we'll see what happens with Mulan.

 

[Creathir]

Do you have the same complaint about going to see new Disney releases in the theater? Should all new Disney releases be included in your $5/month subscription?

No. But the TV in my living room isn’t 40’ tall either...
Nor is the sound system anywhere near what the theater offers.

 

[the.dreamfinder]

Let's say Mulan in Theaters is going to earn $400 Million, over 6 weeks. To match the same revenue, Disney will need to get 13.4 million households to rent the movie. If you assume Disney would have kept 70% of the gross, and with VOD Disney is keeping 100% of the purchase price, the total they need to match the revenue goes down to 9.3 million households..... Doesn't seem like that big of a stretch. That's the bet.

And if it is a success, the price will go up to where they likely want it at; $50-60.

 

[Slpy3270]

Q: International streaming launch under Star (and not Hulu). What's up? And here's Wall Streets push for more VoD. (sigh)

Bob: Hulu is not a international brand, but Star is. Star will be Disney+ international.

We're still committed to the theatrical window. But, we'll see what happens with Mulan.

Only a matter of time till Disney phases the Hulu brand out of the States and replaces it with STAR as well.

 

[brianstl]

Q: International streaming launch under Star (and not Hulu). What's up? And here's Wall Streets push for more VoD. (sigh)

Bob: Hulu is not a international brand, but Star is. Star will be Disney+ international.

We're still committed to the theatrical window. But, we'll see what happens with Mulan.

More honesty than you would normally get there.

 

[TheDisneyDaysOfOurLives]

With a family of five, $30 is ten times better than going to the theaters. Just saying. Can't wait to check it out in September.

 

[BernardandBianca]

I really need some education here. According to Marketwatch, "Walt Disney Co. reported a quarterly loss of nearly $5 billion Tuesday". "The loss was largely due to a $4.95 billion charge Disney took" "After adjusting for that charge and other factors, Disney reported net income of 8 cents a share, compared with $1.34 a share a year ago."

So Disney actually lost money for the quarter??? Sounds like accounting tricks making it seem better.

Then, you get the following statement: "Disney’s earnings were helped by an accounting maneuver in the TV business that boosted operating income beyond expectations. Disney said that it moved costs related to its ownership of rights to sports programming to future quarters because U.S. professional sports were not played in the quarter. That boosted operating income in the media-networks segment to more than $3 billion, 48% higher than last year and nearly double analysts’ average expectation."

So even more accounting scams???? I guess this is why they pay CFOs tons of money.

 

[Tha Realest]

Bob, where’s Bob?

 

[the.dreamfinder]

Q: International streaming launch under Star (and not Hulu). What's up? And here's Wall Streets push for more VoD. (sigh)

Bob: Hulu is not a international brand, but Star is. Star will be Disney+ international.

Politically, this could be a big deal. There has been infighting, as reported by The Information, between Hulu and DTCI/BAMTech.

 

[Tha Realest]

Bob, who’s going to be the new voice of Spaceship Earth?

 

[SpaceMountain77]

I really think they should open the call questions to the WDWMAGIC members in this thread - would be much more entertaining

Hi Bob, question regarding the Parks, Experiences and Products division. The exterior plaster of Disney's Animal Kingdom Villas - Kidani Village is cracking, visibly outside of the lobby. It is so severe that mesh wiring is visible. What is the timeline for this repair?

 

[AEfx]

Bunk...because this is a family forum.

Wdw makes profits running at full capacity 365 days a year...pretty simple

I don’t get those that aren’t following what is still an almost apocalyptically dire future for the parks. The entire resort is designed and based around cramming as many people in as closely as possible and extracting as much money as they will bleed.

Social distancing isn’t going away, even if masks manage to as some point. Nor is enhanced cleaning going anywhere. It is going to be many years before 20M people walk through the gates of the MK again.

 

[MisterPenguin]

Q: Past guidance on D+, any update? What about Japan? What about Fox? What about production? What about insurance? What about getting back to work?

Christine: No update on D+ yet.. still working on it. Look for it on next Investor Day.

Japan: D+ launched limited in June in Japan. Still waiting for a full national launch there.

Fox synergy: still proceeding.

Restarting video production: $1 billion cost for production which includes allowing for COVID restrictions.

 

[DisneyOutsider]

No. But the TV in my living room isn’t 40’ tall either...
Nor is the sound system anywhere near what the theater offers.

What do you think would be a fair price? Also considering they can only sell one viewing per household vs one ticket per household member at the theater...

 

[Slpy3270]

Politically, this could be a big deal. There has been infighting, as reported by The Information, between Hulu and DTCI/BAMTech.

That must explain why Randy Freer got the boot.

 

[JoeCamel]

I really need some education here. According to Marketwatch, "Walt Disney Co. reported a quarterly loss of nearly $5 billion Tuesday". "The loss was largely due to a $4.95 billion charge Disney took" "After adjusting for that charge and other factors, Disney reported net income of 8 cents a share, compared with $1.34 a share a year ago."

So Disney actually lost money for the quarter??? Sounds like accounting tricks making it seem better.

Then, you get the following statement: "Disney’s earnings were helped by an accounting maneuver in the TV business that boosted operating income beyond expectations. Disney said that it moved costs related to its ownership of rights to sports programming to future quarters because U.S. professional sports were not played in the quarter. That boosted operating income in the media-networks segment to more than $3 billion, 48% higher than last year and nearly double analysts’ average expectation."

So even more accounting scams???? I guess this is why they pay CFOs tons of money.

They lost 5 billion this quarter. One year of reserve cash at this rate.