NOW JOINING US NOW IS CALEB
SILVER EDITOR IN CHIEF
INVESTOPEDIA CALEB GOOD MORNING
NOW WHAT ARE YOUR PREDICTIONS
FOR WHAT WILL SEE THIS
AFTERNOON.
>> WELL, I'M HOPING FOR A
TURNAROUND HERE DISNEY'S HAD 4
STRAIGHT QUARTERS OF REVENUE
DECLINED THAT DOES NOT SOUND
LIKE THE MAGIC KINGDOM
TO MAKE. BUT YOU'VE GOT TO
THINK ABOUT WHAT ITS BUSINESSES
ARE AND THAT'S WHY IT'S HAVING
THOSE REVENUE DECLINES A 3RD OF
ITS BUSINESSES THE PARTS IN THE
NEWS AND
AND ATTRACTIONS A 3RD OF ITS
BUSINESSES AND STREAMING
NETWORKS, INCLUDING DISNEY PLUS
WHICH IS DOING WELL, BUT THE
GROWTH HAS BEEN SLOWING
AND THE 3RD OF THE PRODUCTS
PART OF THAT BUT THEY'RE ALL
KIND OF WOUND UP TOGETHER RIGHT
EXPERIENCE PECKING UP ARE
EXPECTING REVENUE GROWTH 43%
YEAR OVER YEAR REMEMBER
DISNEY LOST MONEY IN THE LAST
IF YOU LOOK AT THE ADJUSTED
BASIS OR LOOKING FOR A PROFIT
GROWTH HERE. BUT THE STOCK HAS
BEEN UNDER SUCH PRESSURE YOUR
TODAY, IT'S DOWN TO ONE 0.5%
IT'S
DOWN ABOUT 12% SINCE IT TIES
BACK IN MARCH TO THE STOCK'S
BEEN UNDER PRESSURE BECAUSE
EXPECTATIONS HAVE BEEN LOW,
LET'S SEE IF WE CAN TURN AROUND
IN THIS
PAST QUARTER.
>> YOU MENTIONED FOR A MOMENT
THAT THE DISNEY PLUS SUBSCRIBER
HAS BEEN SLOWING A LITTLE BIT
BUT DISNEY PLUS HAS SEEN
SIGNIFICANT GROWTH SINCE ITS
LAUNCH LESS THAN 2 YEARS AGO,
BUT THE STREAMING SPACE AS YOU
KNOW IS HEATING UP WITH INTENSE
COMPETITION. WHAT DOES DISNEY
NEED TO DO TO STAND OUT.
>> IT NEEDS BIG HITS WHEN YOU
LOOK AT THE CALENDAR WHAT IT
PLANS TO RELEASE TO THE REST OF
THE YEAR I WAS LOOKING AT THIS
AND CONTO IT
HER NOSE SHANG-CHI AND THE
LEGEND OF THE 10 RINGS THESE
AREN'T BIG FRANCHISE. YOU BUILD
A MUSEUM PARK RIDES ARE SO A
LOT OF THE ACTION FIGURES
AROUND BUT THEY ARE IMPORTANT
MOVIES THEY HAVE THAT THEY ALSO
HAVE THE INTEREST
COURSON WHO AND SOME OTHER
SUBSCRIPTION SERVICES BUT
DISNEY PLUS IS THE JORDAN I
CARRIED THEM THROUGH THE BETTER
PART OF THE PANDEMIC'S GOT OVER
A 100 MILLION SUBSCRIBERS.
REMEMBER
RAISE PRICES I THINK EARLIER
THIS YEAR BACK IN MARCH, A
DOLLAR PRICES ARE STILL PRETTY
CHEAP AS FAR AS STREAMING
SERVICES GO IS IT GOING TO HAVE
TO DO THAT AGAIN IF YOU CAN'T
JUICE SUBSCRIBER GROWTH BECAUSE
IT'S CRAZY COMPETITIVE OUT
THERE THERE ARE SO
MANY SERVICES. I MEAN MORE
PEOPLE NEED DISNEY PLUS WILL
DISNEY THINGS A LOT MORE PEOPLE
IN THAT THEY WANT TO GROW
INTERNATIONALLY, BUT THEY WERE
REALLY SLOWING THE GROWTH LAST
QUARTER AND THAT'S WHAT HURT
THE STOCK
A LOT.
>> INTERESTING BECAUSE AS THE
CEO IS TURNING BETWEEN
23260 MILLION SUBSCRIBERS BY
2024 IS DISNEY PLUS ON TRACK TO
HIT THAT OPINION.
>> WE'RE GOING TO SEE WHAT
HAPPENED IN THE LAST QUARTER I
THINK THEY PROBABLY PICKED UP
SOME SUBSCRIBERS THEY HAD SOME
BIG RELEASES IN THE LAST
QUARTER BUT WHEN IT WAS ONE OF
THEM REMEMBER THAT THE
CONTROVERSY WAS SCAR JO AND
THAT RELEASING IN THEATERS AND
ALSO THE STREAMING PLATFORM, SO
IT PROBABLY PICKED UP SOME, BUT
IT'S GOT TO LOOK TO
INTERNATIONAL GROWTH JUST
LIKE NETFLIX JUST LIKE THE
OTHER MAJOR SUBSCRIPTION
SERVICES BECAUSE AT A CERTAIN
POINT IN THE U.S. YOU'RE TAPPED
OUT IN TERMS OF THE GROWTH RATE
RIGHT WHEN YOU GET BIG IT'S
HARD TO GET EVEN BIGGER UNLESS
YOU START TO LOOK
INTERNATIONALLY THAT'S PROBABLY
WHAT PART OF THE STRATEGY IS TO
GET TO THAT BIG 200 PLUS A
MILLION NUMBER BY 2024 WILL
HAVE TO SEE HOW MANY THEY
PICKED UP IN THIS PRIOR QUARTER
AND WHAT THE FORECAST IS FOR
THE REST OF THE YEAR, BUT YOU
NEED IT RIGHT YOU NEED THAT
GOOD CONTENT AND ENTERTAINMENT
TO BRING PEOPLE INTO THE
SERVICE THAT ARE ALREADY
SUBSCRIBED FOR YOU NEED A
REASON FOR PEOPLE TO SIGN UP
PEOPLE FOR THE
TRIAL BASIS. THOSE 3 MOVIES
THAT I MENTIONED THERE I DON'T
THINK THAT'S GOING TO DO THAT
WE'LL SEE WHAT ELSE THAT HAS UP
ITS SLEEVE.
>> NOW IT'S ABOUT THEME PARKS
BECAUSE WE'RE SEEING THEME
PARKS OPEN BUT IN A LIMITED
CAPACITY, HOW CLOSE DO YOU
THINK WE ARE TOO
GETTING THEME PARKS TO
PREPANDEMIC LEVELS, ESPECIALLY
FOR DISNEY.
>> THAT'S GOING TO BE ROUGH.
IT MAY TAKE TO THE END OF THE
YEAR OBVIOUSLY WITH THE DELTA
VARIANT YOU'RE NOT GOING TO
HAVE LESS PEOPLE GOING TO THEME
PARKS. WE WANT TO GO TO A THEME
PARK WHEN YOU HAVE TO WEAR A
MASK OF ALL TIME THAT'S HAD A
LOT OF PEOPLE HAVE GONE THERE
OPEN AROUND THE WORLD WITH MASK
MANDATES IN MOST PLACES.
WE ARE IT'S PRETTY HOT OUT
THERE AND A LOT OF CITIES RIGHT
NOW SO THAT CAN DETER A LOT OF
FOLKS AND WE'RE HEADING BACK
TO SCHOOL IN SEPTEMBER. SO THE
OPENING IS HAPPENING AT A TIME
WHERE PEOPLE ARE STARTING TO
PULL BACK ON THEIR VACATION
PLANS AND WE'LL SEE WHAT THE
PROGRESS IN THESE FOR
RESERVATIONS OUT INTO THE REST
OF THE YEAR INTO THE DECEMBER
JANUARY CHRISTMAS VACATION TIME
LINE THERE, BUT IT'S A TOUGH
PERIOD FOR FOR DISNEY BECAUSE
IT NEEDS A 3RD OF ITS REVENUE
TO COME FROM
THESE PARKS, BUT RIGHT NOW IT'S
HAVING ISSUES WITH GETTING
FOLKS OUT THERE BECAUSE OF THE
MASK MANDATES BECAUSE OF THE
CONCERNS ABOUT THE
DELTA VARIANT.
>> SORT OF THE WHAT ARE SOME
OTHER POINTS THAT YOU ARE
WATCHING OUT FOR TODAY.
>> WELL YOU WANT TO LOOK AT
THAT REVENUE GROWTH BECAUSE 4
STRAIGHT QUARTERS OF REVENUE
DECLINES DOES NOT SOUND.
LIKE TO HAVE AND A MASSIVE
HOUSE OF THE MOUSE HOUSE RIGHT
THIS IS A COMPANY THAT
CONTINUES TO GROW REVENUE YEAR
OVER YEAR, BUT IT HAD THIS
ROUGH SPOT BECAUSE OF THE
NATURE OF ITS BUSINESSES WE
WANT TO SEE THE
PACE OF INCREASES WE WANT TO
SEE WHAT THAT LOOKS LIKE GOING
OUT INTO THE REST OF THE YEAR
WE WANT TO SEE HOW IT'S DOING
IN THE OTHER PARTS OF HIS
BUSINESS REMEMBER THOSE 3 KEY
PARTS, THE PARKS AS WHAT IS A
KEY PART OF IT HAS
THE VACATION, YOU THE CRUISE
SHIPS THAT HAS SOME RESORTS AND
HAS THOSE ITS HAS ITS GOT TO
DEAL WITH WHERE THE SPENDING
HAS FALLEN,
IT'S GOT. IT'S STREAMING
SERVICES, INCLUDING HULU IT'S
GOT THE S P N AND THE OTHERS SO
WE WANT TO SEE WHAT SCRIPTURE
RATES LOOK LIKE THEY'RE THOSE
HAVE BEEN FOLLOWING DECLINING
OVER TIME ARE THOSE PICKING UP
TO DATE LOOK GOT DO THEY SEE
PROGRESS GOING OUT INTO THE
REST OF THE YEAR AND WHAT ARE
THEY DOING ON THE ON THE TOY
FRONT ON THE MANUFACTURING AND
THE AND THE AND THE GOODIES FOR
THE KIDS OUT THERE SO YOU GOT
TO LOOK AT THOSE 3 COMPONENTS,
WHERE'S THE GROWTH THE
STRONGEST MARGINS ARE BEST IN
THE STREAMING SERVICES SO WE
NEED TO BE TO PICK UP THERE IN
SUBSCRIBERS ACROSS ALL OF THOSE