Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Walt Disney Co (DIS, Financial) reported strong performance in its creative segments, with television series and general entertainment programming winning a record-breaking 60 Emmy Awards.
- The company achieved significant success at the summer box office with top movies like Inside Out 2 and Deadpool & Wolverine, and anticipates further success with upcoming releases such as Moana 2 and Mufasa: The Lion King.
- Disney's Experiences segment, including Parks and Cruise Lines, continues to be a leader in the industry, with multiple expansions and new projects underway.
- The company ended the quarter with 174 million Disney+ Core and Hulu subscriptions, highlighting the strength of its streaming platform.
- Disney is integrating ESPN into Disney+ and plans to launch ESPN's flagship direct-to-consumer offering in 2025, enhancing its sports streaming capabilities.
Negative Points
- The company faces challenges with linear networks, which are expected to continue declining as consumers shift to streaming platforms.
- There are concerns about the impact of new attractions from competitors, such as the Epic Universe, on Disney's Parks business.
- The international market, particularly in Shanghai, showed some consumer softness, which could impact future growth.
- The company is cautious about investing heavily in local content for international markets until it can ensure adequate returns.
- There are uncertainties regarding the financial implications of the divestiture in India and the future structure of Disney's business in the region.
Q & A Highlights
Q: Can you provide insights on the ESPN flagship launch and its impact on sports fans and ESPN's future?
A: Robert Iger, CEO, explained that the ESPN flagship will offer a unique experience with integrated features like betting and AI-driven personalized content. It aims to enhance customer experience and attract advertisers with live sports, leveraging advanced ad technology.
Q: What are the expectations for Disney's Experiences segment in 2025?
A: Hugh Johnston, CFO, noted that while Q1 will be impacted by hurricanes and pre-launch costs for the Disney Treasure, the segment is expected to see positive growth from Q2 onwards, driven by new attractions and a strengthening consumer base.
Q: How is Disney addressing the challenges and opportunities in advertising growth?
A: Robert Iger highlighted that linear advertising remains strong due to live content, while streaming offers differentiated audiences. Disney's integrated ad tech capabilities are expected to drive growth, with a focus on both linear and streaming platforms.
Q: What is Disney's approach to content production and investment in international markets?
A: Robert Iger stated that while Disney has slowed investment in international markets, they plan to selectively invest in EMEA and APAC to grow their streaming business. The focus is on ensuring technology improvements to maximize returns on content investments.
Q: How does Disney plan to manage the decline in linear networks and the impact of the DirecTV agreement?
A: Hugh Johnston explained that Disney anticipates a continued decline in linear networks but is well-positioned with its streaming services. The DirecTV agreement is tailored to the specific partner, and Disney remains flexible in adapting to consumer preferences.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
