News The Walt Disney Company Q2 Earnings Call

BrianLo

BrianLo

Well-Known Member
Sirwalterraleigh said:
You’re not following Netflix’s strategy properly

They cranked the spending, got subs up and increased fees…and THEN throttled back. We don’t know if it will be sustainable yet?

But that’s what Disney is banking on. They may be right but it’s not a sure thing
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I do follow it. Depends what the end goal is and that’s where we seem to be at odds. The goal isn’t to be as big as Netflix, it’s to be as profitable as Netflix. There’s a difference and the numbers multiples are different.

Netflix has a bigger market cap than the entire Disney company. Disney is looking to be a mid weight streamer, but Iger rolled back the Chapek strategy of turning Dis nearly exclusively into a Netflix competitor. They don’t need to spend like Netflix because they aren’t trying to be Netflix anymore.
 
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doctornick

Well-Known Member
Question: are Prime video or Apple TV plus profitable on their own? I'm pretty sure they are not as they basically function as just "bonus" features for subscribers of the main profit centers for the companies.

I guess what I'm trying to get at is: outside of Netflix and Hulu, has any streamer been profitable? I don't think Max has been. If D+ ends up turning a profit this year, it seems that would be a big feather in the cap for Disney compared to other legacy media companies.
 
Disney Irish

Disney Irish

Premium Member
BrianLo said:
I do follow it. Depends what the end goal is and that’s where we seem to be at odds. The goal isn’t to be as big as Netflix, it’s to be as profitable as Netflix. There’s a difference and the numbers multiples are different.

Netflix has a bigger market cap than the entire Disney company. Disney is looking to be a mid weight streamer, but Iger rolled back the Chapek strategy of turning Dis nearly exclusively into a Netflix competitor. They don’t need to spend like Netflix because they aren’t trying to be Netflix anymore.
Click to expand...
Not only that but content spend is always going to be part of the equation if you're in the media space, whether that is linear, theatrical, or streaming. Disney has the benefit of being able spread that content spend across the entire DTC and still have it benefit D+ in the end. So because of that Disney can spend less than Netflix but still effectively "compete" with them without a huge upswing in content spend.
 
Disney Irish

Disney Irish

Premium Member
doctornick said:
Question: are Prime video or Apple TV plus profitable on their own? I'm pretty sure they are not as they basically function as just "bonus" features for subscribers of the main profit centers for the companies.

I guess what I'm trying to get at is: outside of Netflix and Hulu, has any streamer been profitable? I don't think Max has been. If D+ ends up turning a profit this year, it seems that would be a big feather in the cap for Disney compared to other legacy media companies.
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WBD tries to lump Max in with HBO linear numbers to say its profitable, but you're right. So for D+ to do it it would be something that very few in the space have done.
 
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Eric Graham

Well-Known Member
Inflation rears it ugly head again and the fed wants to somehow keep rates at 2, while the government spends a trillion every 100 days...It's not fiscally surmountable.
 
MarvelCharacterNerd

MarvelCharacterNerd

Well-Known Member
Sirwalterraleigh said:
The same things that were a “bad deal”
For Disney during speeches a couple years ago?
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Bob Chapek's "unfavorable attendance mix". ;)

But what he really meant was:

1713059889839.png


;)
 

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