SHARPENING ITS FOCUS IN THE
STREAMING THE CONGLOMERATE
ANNOUNCING A MAJOR
REORGANIZATION TO ITS MEDIA AND
ENTERTAINMENT DIVISIONS MONDAY
THAT WILL ACCELERATE THE
COMPANY'S DIRECT-TO-CONSUMER
STRATEGY IN LIGHT OF THE
SUCCESS OF DISNEY PLUS JOINING
US NOW IS KELLY O'GRADY DOT L
A CHIEF CORRESPONDENT AND
FORMER DISNEY SENIOR ANALYST
KELLY ALWAYS GREAT TO HAVE YOU
ON THE SHOW SO OBVIOUSLY HUGE
CHANGES FOR DISNEY ARE YOU
SURPRISED BY THIS MOVE FOR A
SURPRISE BY THE SPEED WITH
WHICH IT HAPPENED OR WAS THIS
LARGE EXPECTED FOR YOU.
>> YEAH, YOU KNOW I THINK IT
WAS PRETTY EXPECTED YOU EVEN
HAD ACTIVISTS INVESTOR DAN LOEB
COMING OUT AGAINST THEM LAST
WEEK SAYING HEY YOU KNOW WE
NEED FOCUS ON
ON STREAMING. AND I THINK FOR
ME THIS JUST REALLY ESTABLISHES
THEM AS A TAX
FIRST COME I THINK THE LANGUAGE
THAT THEY USED IN THEIR PRESS
RELEASE THEY PLAN TO PRODUCE
ORIGINAL CONTENT FOR THEIR
STREAMING SERVICES AS WELL AS
THE LEGACY PLATFORMS THAT
WORD LEGACY IS REALLY TELLING
ABOUT WHAT'S GOING ON IN THE
MINDS OF LEADERSHIP AT THE
COMPANY I
THINK IT CLEAR SIGNAL THAT
THEY'RE ALSO VERY BULLISH ON
CONSUMER DATA AND YOU'RE GOING
TO SEE A LOT
MORE BUCKING OF THAT
TRADITIONAL FILM RELEASED, WE
KNOW THAT WE SAW WITH ONE BY GO
A LOT OF
DISNEY PLUS THEY'RE GOING TO A
LOT MORE ABOUT ME THAN IF I
WENT TO AN AMC THEATER SO YOU
HAVE THIS DOESN'T REALLY
SURPRISE
WE'VE SEEN DISNEY FOCUS A LOT
MORE ON THAT FLEX AMAZON APPLE
IS OUR
KEY COMPETITORS IN THE LAST
COUPLE OF YEARS AND THIS JUST
ALLOWS THEM TO BE.
PLATFORM AGNOSTIC AND FOCUS ON
WHAT THEY'RE GOOD AT WHICH IS
CONTENT CREATION AND I'M
THINKING ABOUT HOW TO
DISTRIBUTE THAT. ACROSS THEIR
DIFFERENT
DISTRIBUTION ARMS.
>> YEAH, KELLY, YOU KNOW,
ESPECIALLY FOR THOSE HIGH
BUDGET FILMS LIKE MILAN WHICH
WE SIDE DIDN'T NECESSARILY DO
AS WELL AS PERHAPS THE COMPANY
HOPED BY LAUNCHING ON
DISNEY PLUS THERE'S CONCERN OF
LOST REVENUE FROM THEATRICAL
RELEASE SAYS REGARDLESS OF WHAT
REALLY HAVE BEN'S TO THEATERS
OPENING ACROSS
THE COUNTRY. DO YOU THINK IF
DISNEY WILL BE ABLE TO MAKE UP
THAT LOST REVENUE IN THEIR
STREAMING STRATEGY, WHETHER
THAT MEANS MORE TEARS OF
CONTENT EXTRA PREMIUM CONTENT
LIKE HOW PEOPLE HAD PAID FOR
MILAN HOW DO YOU THINK THEY'RE
GOING TO MAKE UP FOR ANY LOST
REVENUE FOR THE THEATER'S
OVERALL.
>> YEAH I THINK IT'S A GREAT
QUESTION MAYBE ANNOUNCED THAT
THEY'RE RELEASING THE PAN THAT
WILL BE SOLD AT THE END OF DAY.
DECEMBER, BUT IT'S NOT GOING TO
BE FOR AN EXTRA FEE
LIKE MILAN BECAUSE AS YOU SAID
THAT DIDN'T DO AS WELL THAT WAS
OF COURSE CONFLATE IT WITH SOME
OF THE POLITICAL ISSUES ARE OF
THE MOVIE SO IT'S HARD TO
COMPLETELY TELL. BUT YOU KNOW I
DON'T NECESSARILY THINK YOU'RE
GOING TO SEE THEM RIGHT COOP
ALL OF THE LOSSES THAT HAVE
HAPPENED DURING THE PANDEMIC
AND THEY'RE INSTEAD USING THIS
AS
AN OPPORTUNITY TO MAKE MORE
BOLD MOVES WITH SHAREHOLDERS
MEAN AS WE'VE SEEN IT AT THE
HYBRID TECH AND MEDIA STOCKS
ARE THE ONES THAT HAVE
PERFORMED THE BEST DURING
THE PAN MAKE INTO THIS GIVES
DISNEY AN OPPORTUNITY TO
ACCELERATE A STRATEGY THAT WAS
ALREADY THERE IT ALSO GIVES
THEM THE OPPORTUNITY TO DO THAT
WHEN THE OTHER TEENS ARE IN IT
VERY
VULNERABLE POSITION AND SO
THEY'RE ABLE POTENTIALLY TO
TAKE ADVANTAGE
OF THAT AND AND CHANGE SOME OF
THE MORE TRADITIONAL
DISTRIBUTION POWER THAT THEY
HAVE TO BE TAKEN IN THE PAST
AND TAKE THAT THEIR ADVANTAGE
MOVING OUT OF
A PANDEMIC.
>> KELLY I DO ASK YOU ABOUT
LEADERSHIP AS WELL SINCE YOU
DID WORK AT DISNEY BEFORE IN
FACT HE WORKED WITH
KAREEM DANIEL WHO IS NOW THE
CHAIRMAN OF THE MEDIA AND
ENTERTAINMENT DISTRIBUTION
DIVISION. THIS NEWLY FORMED
DIVISION. WHAT DOES THIS TELL
YOU ABOUT THE POWER DYNAMICS OR
OR CHANGES AROUND THAT FOR
DISNEY.
>> SURE THIS IS THE
JUICIEST MEANER TO ME IS COMING
OUT BECAUSE OF THIS THE I WORD
TO KAREEM VERY SHARP GUY I
THINK THERE'S A COUPLE THINGS
THAT COME TO MIND AND YOU'RE
SEEING CHE FACT INSTALL
HIS TOP PEOPLE IN THE TOP
LEADERS POSITIONS AT THE
COMPANY WHICH IS NOT
SURPRISING. THAT'S WHAT
HAPPENED AND WHEN A NEW CEO NEW
CHANGING OF THE GUARD COMES IN.
I THINK THERE'S A COUPLE PIECES
THAT I FIND INTERESTING THOUGH
FIRST THIS IS AN OPTIC WHEN
DISNEY HAS NOT HAD AN AFRICAN
AMERICAN MALE. AT THE TOP FOR
QUITE SOME TIME A BIT OF AN
UPTICK LAST THOUGH BECAUSE
REBECCA CAMPBELL WHO HAD BEEN
NAMED CHAIRMAN OF
DIRECT-TO-CONSUMER AND
INTERNATIONAL WHEN KEVIN MAYER
LEFT FOR TECH TALK.
BIT OF A DEMOTION FOR HER YOU
KNOW HER GROUP IS KIND OF LOST
ITS POWER. SHE'S GOING TO BE
REPORTING IN TOUCH A PACK
AND INTERNATIONAL BUT REPORTING
TO KAREEM ON THAT DIRECT TO
CONSUMER SIDE SO THAT I FIND
REALLY INTERESTING THE OTHER
PIECE THOUGH THAT I THINK IS
FASCINATING
ABOUT THIS IS THAT THEY ARE
CHANGING THE STRUCK
SURE FOR ALL OF THE MEDIA
ENTERTAINMENT GROUPS TO BE
ORGANIZED UNDER 01:00PM NOW AND
THAT WAS SOMETHING THAT WE
STRUGGLED SO MUCH WITH WHEN I
WAS DISNEY WAS A HUGE PAIN
POINT BECAUSE YOU'D HAVE THE S
P AND THE THE TV GROUPS HAVING
THEIR ON PIANO IS HARD TO GET
STAKEHOLDER ALIGNMENT WHY
SHOULD A STUDIO MISS OUT ON
NETFLIX LICENSING REVENUE
BECAUSE ESPN WAS STRUGGLING
WITH THE CABLE ECOSYSTEM CRISIS
AND SO THIS ALLOWS THEM TO HAVE
THAT NOW THAT CONTROL IN THAT
ABILITY TO MAKE DECISIONS
ACROSS DIFFERENT CONTRACTORS.
IT'S A HUGE EXECUTION
RISK THOUGH I HAVE FAITH IN IN
KAREEM AND THE LEADERSHIP THERE
THEY'RE ALL VERY SMART BUT YOU
KNOW
WHAT HAPPENS WHEN YOU HAVE
CONTENT GROUPS THINKING THAT OF
A CONTENT PIECE IS GOING TO
PLAY BETTER. IN A LARGE THEATER
RELEASED AND INVESTING ALL
THOSE DOLLARS IN THE SPECIAL
EFFECTS IN PLUS TALENT AND YOU
HAVE THE DISTRIBUTION GROUPS
SAY WELL THAT ACTS WE'RE GOING
TO BE BETTER MONETIZE
DISNEY-PLUS SO THERE'S GOING