News The Walt Disney Company Board of Directors Extends Robert A. Iger’s Contract as CEO Through 2026

[TrainsOfDisney]

They'll just open the vault........

What’s left? I mean maybe I’ll renew if they add the Great Locomotive Chase but I’ll be the only one! Haha

 

[JoeCamel]

What’s left? I mean maybe I’ll renew if they add the Great Locomotive Chase but I’ll be the only one! Haha

They think a lot?

 

[HauntedPirate]

What’s left? I mean maybe I’ll renew if they add the Great Locomotive Chase but I’ll be the only one! Haha

Song of the South.

I’ll see myself out.

 

[_caleb]

It's kinda of hard to promote your product and drive your relevancy when someone else controls the eyeballs and can just be like 'nah...'.

You're assuming the consumers will demand your product be included... but eventually as time moves on, the knowledge of your past product dies out... you can't rely totally on your history. They need the ability to push and promote NEW product too. They didn't want to risk just being a content provider.

This. Direct-to-Consumer gives Disney total control and all the user behavior data. Data is the real key here. They KNOW what people actually watch (not just what they say they watch), when, where, and on which devices. They know which content are effective gateways to other content.

I read once this neat article about how Netflix used A/B testing to figure out the optimal thumbnail to show different types of users that would make them much more likely to click and to watch.

 

[Sirwalterraleigh]

Wow this thread got spicy…

A lot of good points…but as always a failure to identity patterns fully

The lauding of Disneys performance from 2005-2020 conveniently ignores its 2014-2024 performance has been terrible. We lost a lot of the money we could have gained…

And if you want to laud growth…check it out from 1984 to 1999…splits galore…

But then try to see why it’s relevant now…put the hamster on overdrive

 

[Sirwalterraleigh]

It’s kind of baffling that the studios saw how much they were spending to produce content, and then licensing it to Netflix or Hulu for $$$. Then they were like what if we just make our own streaming services

It's kinda of hard to promote your product and drive your relevancy when someone else controls the eyeballs and can just be like 'nah...'.

You're assuming the consumers will demand your product be included... but eventually as time moves on, the knowledge of your past product dies out... you can't rely totally on your history. They need the ability to push and promote NEW product too. They didn't want to risk just being a content provider.

I don’t know if you’re trying to agree on a point…but you have

And the point is this: the only way to make traction in the steaming market is to churn out original content that keeps a fickle audience glued.
Guess who’s not doing that?

Raiders and Peter Pan isn’t gonna flood money as we seem to foolishly believe in this neighborhood

 

[Sirwalterraleigh]

This. Direct-to-Consumer gives Disney total control and all the user behavior data. Data is the real key here. They KNOW what people actually watch (not just what they say they watch), when, where, and on which devices. They know which content are effective gateways to other content.

I read once this neat article about how Netflix used A/B testing to figure out the optimal thumbnail to show different types of users that would make them much more likely to click and to watch.

It’s gonna require $100 billion in content per year within just a few years for the model to work…
Bob’s all in, right?

 

[_caleb]

It’s gonna require $100 billion in content per year within just a few years for the model to work…
Bob’s all in, right?

Who says?

 

[Jrb1979]

Who says?

New content isn't free. I'm sorry but most people aren't going to sign up for D+ for Bluey, Bear in the Big Blue House or for D+ to be their kids babysitter

 

[_caleb]

New content isn't free. I'm sorry but most people aren't going to sign up for D+ for Bluey, Bear in the Big Blue House or for D+ to be their kids babysitter

Of course new content isn’t free. And I’m not sure how many will subscribe for kids’ content, but how much do you think a season of Bluey costs to produce? Disney has repeatedly made it clear that they’re going to spend much less on content moving forward. And with the data they’re getting from D+, they’re going to be in a very good position to make what people actually watch without overspending.

And they haven’t even begun to roll out additional D+ revenue streams, like shopping and gaming, which have been in the works for a while now.

 

[Jrb1979]

Of course new content isn’t free. And I’m not sure how many will subscribe for kids’ content, but how much do you think a season of Bluey costs to produce? Disney has repeatedly made it clear that they’re going to spend much less on content moving forward. And with the data they’re getting from D+, they’re going to be in a very good position to make what people actually watch without overspending.

And they haven’t even begun to roll out additional D+ revenue streams, like shopping and gaming, which have been in the works for a while now.

You're average D+ viewer doesn't subscribe for shows like the Imagineering one. It's shows like the Mandalorian that drives subscribers. Those type of shows aren't cheap.

I'm sorry but outside of Netflix I just don't see how any of them will be profitable year after year. Unlike cable, they don't bring in enough subscription revenue to cover the costs of new content.

 

[Lilofan]

Wow this thread got spicy…

A lot of good points…but as always a failure to identity patterns fully

The lauding of Disneys performance from 2005-2020 conveniently ignores its 2014-2024 performance has been terrible. We lost a lot of the money we could have gained…

And if you want to laud growth…check it out from 1984 to 1999…splits galore…

But then try to see why it’s relevant now…put the hamster on overdrive

Growth helped an exec out the door. In 1997 Ovitz severance was $138M, Chapek recently was shown the door with a paltry severance of $23M.

 

[Sirwalterraleigh]

Growth helped an exec out the door. In 1997 Ovitz severance was $138M, Chapek recently was shown the door with a paltry severance of $23M.

The point is you can be “successful” and still run out of time. Most CEOs do…in fact.
Their worth in the wash is whether they accept when it’s time to move on.

 

[Sirwalterraleigh]

Who says?

The Netflix model…for one

They only turned the corner to profitability when they poured money into content and way outspent their competitors.

Anyone that thinks that D+ will be paid for with high sub costs and fees without a constant barrage of new, expensive content at all times should buy magic beans from me…

This is what the Bobs “neglected” to tell people in their sun valley speeches.

Cable was a hassle to dump…streams require a swipe. There’s is no way to sugarcoat that.

 

[Dranth]

It’s gonna require $100 billion in content per year within just a few years for the model to work…
Bob’s all in, right?

Unless I am remembering it wrong, Netflix does it for slightly less than 20. Disney coming in at 25 seems about right for the higher quality they are aiming for.

So, what exactly is going to happen to balloon costs by 4-5 times in the next few years?

 

[MisterPenguin]

Disney v. Netflix spending.

In 2023, Disney spent about $13B more than Netflix.

In 2024, Disney is forecast to spend half a billion less than Netflix.

One might argue that the 2023 spending was a bit much, as seen in the exploding budget of tentpole movies. Don't forget Disney's content spending is for all of it's content: all their movie studies, and all their made-for-TV Disney+, Hulu, ABC, FX, and cable channels.

Netflix is spending just for its streaming service.

However, when you count expenses for sports entertainment, Disney is still way ahead of Netflix.

Content Spending 2024 Projections: Top Media & Tech Companies

VIP+ Analysis: Programming costs at the major streamers and studios are poised to rebound — relatively speaking — in 2024.

variety.com

Content Spending 2023: WBD, NBCU Projected to Reduce Expenses

VIP+ Analysis: New data projects that content spending will dip at WBD and NBCU in 2023 as Hollywood moves to cut costs.

variety.com

 

[Sirwalterraleigh]

Unless I am remembering it wrong, Netflix does it for slightly less than 20. Disney coming in at 25 seems about right for the higher quality they are aiming for.

So, what exactly is going to happen to balloon costs by 4-5 times in the next few years?

…mostly human tendency….

But I was watching something on Bloomberg a few months ago in the fallout of the actors/writers strikes that was predicting a 20% annual escalation in costs for content - which does include movies…

So you get to the math pretty quickly at that rate

 

[Dranth]

…mostly human tendency….

But I was watching something on Bloomberg a few months ago in the fallout of the actors/writers strikes that was predicting a 20% annual escalation in costs for content - which does include movies…

So you get to the math pretty quickly at that rate

Wonder how much sensationalism they were going for as that seems farfetched. Increases are baked into the new deals and they are nowhere near 20%. Even if you assume a worst-case scenario for a studio and they need to hire additional staff to meet the new deal requirements, you aren't even closing in on half that number.

There just isn't a realistic situation where costs increase 20% every year. On a particularly bad year, sure, but not every single one which is what would need to happen to get close to 100bn anytime soon.

 

[Trauma]

Of course new content isn’t free. And I’m not sure how many will subscribe for kids’ content, but how much do you think a season of Bluey costs to produce? Disney has repeatedly made it clear that they’re going to spend much less on content moving forward. And with the data they’re getting from D+, they’re going to be in a very good position to make what people actually watch without overspending.

And they haven’t even begun to roll out additional D+ revenue streams, like shopping and gaming, which have been in the works for a while now.

Yup.

Disney with their super secret algos built into D+ has figured out exactly what people want to watch!!

They have a huge competitive advantage now over Netflix, since this algo will whisper in The Almighty’s ( Bobs ) ear about what shows to make and how to produce it on the cheap!!

I’m loading up on shares now because soon Disney ( or should we call the company Bob since he is the savior ) will rule the world!!!

 

[JoeCamel]

MM+?