Seth Brady’s Post

The Walt Disney Company proxy fight is over, Bob Iger is firmly in charge, and people are musing about what a good fit Apple could be as a Disney acquirer (fun to talk about, but I'm skeptical). More likely: Disney will continue to revamp its impressive set of assets to better suit a #streaming world (get used to the idea of paying for an ESPN subscription); will use #artificialintelligence to supercharge its productions but in ways that are likely to cause controversy (#ai, #workforce, #copyright); and will take its best shot at succession planning. Joined Jon Erlichman of Bloomberg to discuss. This proxy fight also illustrates how the economics of consumer attention are affecting public company stocks. And while Disney is nothing like a meme stock, I can't help but think of this recent Bloomberg column questioning whether stocks will "once again be pure tokens in a psychological gambling game": bit.ly/3U1xi47 (paywall-free, gift article).

Here's a fascinating snippet of the shifting landscape of business profitability. Disney, a titan in the corporate world, used to rely heavily on their TV and cable assets, like the Disney Channel and ESPN. A minor fluctuation in revenues would send their stock price on a wild ride. But recently, a 33% drop in revenue didn't make the stock bat an eyelid. What made the stock leap by 5% was the announcement that Disney+ was gaining another 12 million subscribers. This is despite the fact that Disney+ isn't even profitable yet. It's a perfect example of how the perception of value can shape the market, and this is as true in the entertainment industry as it is in real estate. Repost this if you want to understand the surprising factors that can influence a major company's stock price, like Disney's. #DisneyStocks #MediaIndustryTrends #StreamingServicesGrowth

A clear reflection of the current media companies challenge, earning driven primarily by non media business (Disney's case Parks). For the media business, traditional channels growth & earnings are both shrinking, DTC (Streaming) revenues growing, earning continue to drain. Viability in the current format in question #media #entertainment

Andrew Ross Sorkin asked Disney CFO, Hugh Johnston, the exact right question this morning: "Is Disney now a luxury brand?" Johnston's reply didn't confirm or deny, but the narrative of Disney's recent past is very much a story of raising prices mightily at parks, on cruises and at Disney+. Prices went up at their already highest priced theme parks and cruises in each category where they priced middle income consumers out of the market in the US. The story of the future depends on answers to two questions. Can the luxury experience trend continue? Johnston suggests that they have plenty of room to raise prices without losing park attendance or cruise bookings. The second question: Can Disney's media division start telling stories people will pay to view? Despite Johnston's confidence, that's a much less certain outcome. Disney overpaid for major content that has dramatically underperformed and led directly to Disney+ subscriber attrition. Streaming and media won't work unless the studio starts making quality content that people want to pay to view, again. Disney tells great stories. Will this latest one bomb at the box office or be a hit in 2024-2025?

💥 Disney Q2 earnings results https://lnkd.in/gtZkWt5r "Looking at our company as a whole, it's clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results," Bob Iger, CEO Disney Corporation. 🔹Disney streaming losses narrowed to just $18 million coming very close to hitting profitability. 🔹Disney+ subscribers surge to 153.6 million 🔹Earnings Per Share (EPS) $1.21 which outperformed estimates 🔹Revenue increase to $22.1 billion which was in line with estimates 🔹Revenue per user $7.28 factoring in both domestic and international markets (ex-Hotstar), compared to $6.84 for Q1. 🔹Entertainment revenue fell 5% to $9.796 billion. 🔹DTC revenue grew 13.2% to $5.642 billion 🔹Sports revenue rose 2% to $4.312 billion as ESPN revenue grew 2.6% to $4.207 billion 🔹Theme parks and experiences revenue climbed 10.7% to $7.480 billion and consumer products revenue was up 2.6% to $913 million - both sets beating estimates Bob Iger brought the positive results!!! Most definitely more to come!!! I will be posting a more detailed analysis in the next few days, but definitely MORE exciting times ahead for the Mouse House. 😊 Susie Tom McCarthy Jaxson McLennan Raffaella Stevens Peter Herbert Chris Colombo Jonas Barnes Karen Appathurai Wiggins

In the latest sign that physical media is on a fast descent towards being a relic, Walt Disney is handing the bulk of its DVD and Blu-ray business in the U.S. and Canada to Sony. Like "Old Yeller", it's also the end of the 23-year-old Disney Movie Club, the subscription service and online store where fans could buy DVDs and Blu-rays of films from the House of Mouse. Physical disc sales have been on "The Nightmare Before Christmas" decline for years, accelerated by the streaming boom. And the Disney news shouldn't come as a surprise since Best Buy discontinued sales of DVDs and Blu-ray discs in the store and online early this year, which followed Netflix’s decision last September to shutter its DVD-by-mail service. Chalk it up to "The Mighty Ducks" though, this isn't exactly the end. For Disney, the transition also makes sense since the studio’s physical media operation is pretty much an afterthought given the focus on its streaming service Disney+. On the bright side especially for physical media fans, this arrangement doesn't necessarily spell the end especially if Sony is as efficient as it sounds. Say what? That's right. Disney's vast library full of dust-covered, unreleased gems are a "Treasure Island" yearning to be discovered. These aren't forgotten cartoons, but live-action classics from Fox, Hollywood Pictures, and Touchstone with nearly two dozen former Fox titles remastered in 4K. Seriously, they haven't graced streaming platforms, found a home on Disney+, or earned a physical release on Blu-ray or 4K Ultra HD. If the Sony deal works out, fans could potentially get access to a trove that thus far may as well be "20,000 Leagues Under the Sea". Of course, one can't but feel a range of emotions like "Snow White and the Seven Dwarfs" that the continuing decline of physical media is yet another sign of the erosion of personal ownership in this digital age. Keep those copies of "The Little Mermaid" close https://lnkd.in/e7dMgWR3 #disney #disneyplus #sony #dvd #streaming #culture #subscription #entertainment

Walt Disney Rises on Strong Results The shares of Walt Disney rose nearly 3% in premarket trading on Wednesday, buoyed by strong quarterly results that exceeded Wall Street expectations. The operating income nearly tripled at its Entertainment unit, with the combined streaming services Disney+, Hulu and ESPN+ posting a profit for the first time. The operating income of the Experiences segment, which makes up half of Disney’s profits and includes the parks and consumer products, posted a 3% drop. The adjusted EPS reached $1.39, topping analyst estimates of $1.19, while revenue rose 4% to $23.2 bln., beating forecasts of $23.1 bln. "We are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets," CEO Bob Iger said in a statement. Trade CFDs on Disney: https://lnkd.in/dJkw4FXH 59% of retail CFD accounts lose money.

🚨 As M&A Rumors Circulate on Paramount, Questions Arise Around its Assets #TMTSectorInsights from AlphaSense Another day, another M&A rumor in TMT - Skydance reportedly submitted a “best and final” offer 🤑 to acquire Paramount, which was exclusive until May 3rd. Sony Pictures Entertainment and Apollo Global Management, Inc. have now joined the bidding process with a $26b bid. While management weighs the deal terms, regulatory scrutiny and fundamentals of the business remain key areas of debate 🗣️. #Expert thinks 💬 “Everyone's always like, "Oh, we're in the first inning or second inning." I would say we're in the fifth inning. I think you have the entrenched, entrenched is relative, but you have Netflix isn't going anywhere, you have Apple's not going anywhere just because they're deep-pocketed, and Amazon isn't going anywhere because they're also deep-pocketed 💰, but then you're going to see consolidation happen with NBCUniversal, Warner Bros. Discovery, Paramount, and the smaller players like AMC Networks. I figure, if it's still MSG, those smaller linear players, you're going to see a lot of #shakeups there 🤯. The ones that matter now, The Walt Disney Company is the wild card, I don't really know what's happening there, but more of the core ones will remain the core ones. It'll be the players on the periphery that will matter or that will shake out. It's funny to say that because now I'm saying that Warner Bros. is now on the periphery, and I believe that.” #WallStreet thinks 💬 “We recognize that there is upside here pending the M&A process, especially with Sony-Apollo in the mix. However, #uncertainties remain 🤨 about the owner’s decision and #regulatory scrutiny in the pursuing months after an offer is accepted. We will revisit our rating once there’s more clarity on the acquirer and the terms of the offer.” What are your thoughts? ⬇️ #tmt #marketintelligence #insights #strategy

🚨 As M&A Rumors Circulate on Paramount, Questions Arise Around its Assets #TMTSectorInsights from AlphaSense Another day, another M&A rumor in TMT - Skydance reportedly submitted a “best and final” offer 🤑 to acquire Paramount, which was exclusive until May 3rd. Sony Pictures Entertainment and Apollo Global Management, Inc. have now joined the bidding process with a $26b bid. While management weighs the deal terms, regulatory scrutiny and fundamentals of the business remain key areas of debate 🗣️. #Expert thinks 💬 “Everyone's always like, "Oh, we're in the first inning or second inning." I would say we're in the fifth inning. I think you have the entrenched, entrenched is relative, but you have Netflix isn't going anywhere, you have Apple's not going anywhere just because they're deep-pocketed, and Amazon isn't going anywhere because they're also deep-pocketed 💰, but then you're going to see consolidation happen with NBCUniversal, Warner Bros. Discovery, Paramount, and the smaller players like AMC Networks. I figure, if it's still MSG, those smaller linear players, you're going to see a lot of #shakeups there 🤯. The ones that matter now, The Walt Disney Company is the wild card, I don't really know what's happening there, but more of the core ones will remain the core ones. It'll be the players on the periphery that will matter or that will shake out. It's funny to say that because now I'm saying that Warner Bros. is now on the periphery, and I believe that.” #WallStreet thinks 💬 “We recognize that there is upside here pending the M&A process, especially with Sony-Apollo in the mix. However, #uncertainties remain 🤨 about the owner’s decision and #regulatory scrutiny in the pursuing months after an offer is accepted. We will revisit our rating once there’s more clarity on the acquirer and the terms of the offer.” What are your thoughts? ⬇️ #tmt #marketintelligence #insights #strategy

How a Mouse Swallowed a Fox and Rewrote Entertainment History! . . . . . . . . . . . . . . Navigating the streaming era, Disney recognized the winds of change. In 2019, armed with a visionary mindset, Disney acquired 21st Century Fox for $71.3 billion. This bold move expanded Disney's content universe, welcoming iconic franchises like X-Men and Avatar into its fold. Amidst a shifting landscape dominated by on-demand platforms, Disney strategically leveraged this merger to launch Disney+, a streaming giant that quickly reshaped the industry. The acquisition wasn't merely about content; it was about future-proofing Disney in an evolving digital age. In essence, Disney's acquisition of 21st Century Fox serves as a masterclass in adapting to change, fortifying relevance, and emerging stronger in an ever-transforming business landscape. #disney #entertainmentindustry #mickeymouse