As a listener to the Disney Entertainment conference call ($DIS (-3.04%) ), I was able to learn many interesting details about the company's current strategy and future plans.
Analyst Benjamin Swinburne from Morgan Stanley conducted the call with Dana Walden, Co-Chairman of Disney Entertainment. She answered questions and gave insights into the organization, the creation of value through content, the streaming strategy, the focus on children's and family programming, technological development, advertising opportunities and the management of the company.
At the beginning of the interview, Dana Walden explained the structure of Disney Entertainment . Following the return of Bob Iger, the company was divided into three segments:
- Parks and Experiences under the leadership of Josh D'Amaro
- ESPN under the management of Jimmy Pitaro
- Disney Entertainmentwhich is jointly managed by Alan Bergman and Dana Walden
Alan Bergman is responsible for movie studios and branded series, while Dana Walden oversees global television . Together they are responsible for Disney+ and Hulu, including ad sales, technology and platform distribution. This structure is designed to empower creative executives and combine accountability for revenue and expenses. Bob Iger wanted to link those responsible for expenditure directly to revenue.
A central theme was the importance of content for the value creation of the entire company . Disney is known for its outstanding stories and characters, which are used in all areas of the company. Alan Bergman's film studios led the box office with a turnover of 5.5 billion dollars. Disney owns 50% of the top 10 streaming shows of the year. This content powers Disney+ and Hulu and is used in the parks, on cruise ships and in consumer products. The result is a value chain that permeates the entire company.
In the area of streaming Disney has made considerable progress. Having previously lost over 1 billion dollars per quarter, the company is now profitable and generating increasing revenues with the prospect of double-digit margins. An important step was the integration of Hulu into Disney+ for subscribers of both services. This increases customer loyalty and reduces churn. Disney plans to continue releasing high-quality content such as "Moana 2" and "Mufasa". Dana Walden is particularly proud of the 60 Emmy Awards that Disney series have won.
An important aspect of the streaming strategy is the international expansion. Disney is investing in local original productions to appeal to subscribers worldwide. One example is the Korean series "Moving", which has gained over 1.5 million subscribers.
Another focus is on ESPN and the planned direct-to-consumer offer. Although Dana Walden leaves the details to Jimmy Pitaro, she emphasized that sports is the most successful form of entertainment. The integration of an ESPN section into Disney+ with over 3,000 hours of programming and the daily "SportsCenter" show SC+ has already led to increased usage. Many subscribers are taking advantage of the opportunity to upgrade to the trio bundle (Disney+, Hulu and ESPN+).
An important area for Disney has always been children's and family entertainment. Disney is the number 1 brand for pre-school children. The most streamed program in the USA last year was "Bluey". Disney also produces thousands of videos for YouTube to reach kids where they consume content. Disney is working on technologies that enable children to interact with content in a contemporary way. Live channels on Disney+ such as Disney Playtime are also very popular.
Dana Walden emphasized that technology is of great importance to Disney. The company has invested in technology experts, including Adam Smith from YouTube and Andre Rohe from YouTube and Meta. They are to drive forward algorithmic programming, personalization and the use of AI. An important goal is to make password sharing to combat password sharing.
In conclusion, Dana Walden emphasized the the stability and talent of the Disney leadership team. of Disney. She praised the cooperation with Bob Iger and emphasized that the company is in good hands. Despite the challenges of recent years, she is confident that Disney will continue to be successful in the future.
Overall, the conversation gave me a detailed insight into the strategy and future plans of Disney Entertainment. The clear priorities, the focus on content, technology and international expansion make me optimistic about the company's future.
Do any of you have Walt Disney in your portfolio?