Disney/Hulu News

[SamCdbs]

Yep! I haven't followed the Disney earnings calls since I dumped all my Disney stock in the $190's. I had heard some scuttle like you posted but I agree if Disney can't make Streaming work then shut it down and sell the content to other companies that can make Streaming work, like Netflix.

Disney's mismanagement will be written in textbooks in years to come. They made the exact wrong move at every juncture for nearly a decade.

Lets look at its eterenally unprofitable streaming trifecta.

Disney Plus. A niche service. Families with children 4-14ish. Unlock the Disney classics vault, toss in the kind of cheaply made crapola found on the Disney Channel (and reruns from previous generations). The modern version of having all the old Disney classics on DVD or VHS for the kids to watch. A profitable niche product. But no. NETFLIX!!!! Panic. Lets spend millions and millions on original content!!!!! And the public? Less want what it has to offer than it costs to make. Now and forever.

ESPN+. A niche service. Mega-sports fans, mid-major fans, degerate gamblers. Disney has more rights, particularly in the college space, than it has room to show. Toss it up on streaming, along with stuff from other countries, goofy sports, ESPN Classic, and some old reruns of its 30 for 30 and similar political stuff. But no. NETFLIX!!!!!! Panic. Lets spend millions and millions on original content. NHL, PGA, MLB, toss in things on real ESPN. And the public? Less want what it has to offer than it costs to make. Now and forever.

Hulu. An idiotic service. For decades the basis of Big Media profits has been retransmission fees. You want what is on the networks? Pay up. But no, NETFLIX!!!!!!! Panic. Actually be stupid enough to let people have access to network shows, without paying their fair share. And the public? Less want what it has to offer than it costs to make. Now and forever.

And now these geniuses want to sell real ESPN. Even they understand that the small number of people who want it need to come up with $100/month or more to cover its costs, so they whistle past the graveyard, doing a 3 year "project mothership" idiot study, and dream up this daft "dual distribution model" where, for reasons unexplained, cable companies will be just fine with charging every single customer big money for ESPN, even teh 80 to 90% that don't want it, and their customers will be just fine with paying for it. When they can just go streaming. All so the smart people can afford ESPN on streaming. Three years. Rather thand five minutes. "Boss, it cannot be done, keep it in the bundle, and make it clear to everyone that they will N E V E R get it any other way."

Fools.

Could also go into how they run their parks, but that is politics. Also destroyed Star Wars, Marvel, etc.

Fools.

 

[ncted]

Disney's mismanagement will be written in textbooks in years to come.

You're not wrong about a lot in this rant. Disney has been mismanaged for while now, and Netflix has a lot to do with the choices they made. That said, Hulu was nicely profitable as a standalone service before Disney+ came along, so I don't think it was a huge blunder like you do. ESPN+ was always a solution in search of a problem -- decent idea I guess, but one that wasn't needed at the time. Disney+ launched too late, so they felt like they had to dump billions into it very fast to make top quality entertainment when they could have spent a fraction and used more of their back catalog to get similar subscriber numbers if they had launched a few years earlier when the road ahead was clearly streaming.

As for their parks, the real problems are with over-reliance on IP, much of which hasn't aged well, and under-investment on new content (rides, shows, attractions) that is timeless.

Or course, the dying traditional linear TV model made Disney even more scared and willing to take risks which didn't pay off how they hoped.

I appreciate your "rage, rage against the dying of the light" mentality when it comes to this stuff, but nothing stays the same forever. The world is moving on.

 

[TheForce]

I work for Disney,have since February,

OK, that explains your bias. I love Disney World but since Bob Paycheck took control I only went back when they offered the Star Cruiser. I did find a couple dates with vacancy back in February but couldn't schedule those dates with my Grandkids. Seems Disney lost it's way to properly know how to make a popular attraction profitable.

I assume you never experienced The Starcruiser and are not a big fan of the StarWars themes but drink the Kool Ade from top management. The Halcyon is not the only cancellation in the parks that Disney shot themselves in the foot with. I hope you were not part of management that voted to destroy the magic that has made Disney so successful over the decades. Bob Iger 1 was great for the Theme Parks. Bob Iger 2 is different in a bad way. I wonder what changed him and don't say it was Covid. I'm tired of people blaming their failures on Covid.

There are ways that Disney could have greatly lowered the cost of that attraction and not ruined the lure of what was offered. But no, they decided to spend even more money to tare it down rather than listen to the fans who pay for the experience. I assume that once the technology was developed the ongoing overhead was mostly payroll for the actors. While we enjoyed the fun and interaction with the actors, the most fun we had was the Bridge, the Engineering room, and the kids loved playing along with the iphone app and hunting down clues. They loved the Sabacc tournament and the weird food. So most people I talked to on the forums rated only one actor as fun but basically low on the must have list. Listen to your customers and succeed. Recall when Kathleen Kennedy said she doesn't care what the fans want. What's important is her agenda and what she wants to change from the Lucas story. When you're in charge and you don't listen to your customers you will fail.

 

[Bruce]

OK, that explains your bias.

I have no bias, ever since they closed the department I was in, laid me off, brought me back and then place me in a different department, I have absolutely hated it, the first few months were great in the department I was hired for, now I cannot wait until my contract is up next May.

I love Disney World but since Bob Paycheck took control I only went back when they offered the Star Cruiser. I did find a couple dates with vacancy back in February but couldn't schedule those dates with my Grandkids. Seems Disney lost it's way to properly know how to make a popular attraction profitable.

They tried, just the demand was not there, too expensive.

I assume you never experienced The Starcruiser and are not a big fan of the StarWars themes but drink the Kool Ade from top management.

Read the above and you have no reason to be insulting.

Love Star Wars, the Starcruiser is not something I would want to do on my own.

The Halcyon is not the only cancellation in the parks that Disney shot themselves in the foot with. I hope you were not part of management that voted to destroy the magic that has made Disney so successful over the decades.

Not what I do.

Bob Iger 1 was great for the Theme Parks. Bob Iger 2 is different in a bad way. I wonder what changed him and don't say it was Covid. I'm tired of people blaming their failures on Covid.

He has been handed a bad hand , all the animated movies that have failed, were planned while he was gone, cord cutting has destroyed the TV Division, per sub fees down, advertising way down also, advertisers have moved on to streaming because slots are cheap and targeted .

All advertising on regular TV is discounted now, the only slots where they are not, is during Football

What's important is her agenda and what she wants to change from the Lucas story. When you're in charge and you don't listen to your customers you will fail.

Loved The Force Awakens and Rogue One, the rest no.

But doubtful she is going anywhere ( no rumors about it), all of the movies ( except one) did great at the box office and merchandising is still amazing at how much it brings in.

 

[TheForce]

Read the above and you have no reason to be insulting.

Wasn't meant to be insulting, just an observation on how defensive you were regarding my cancellation of Disney+.

Since you are in accounting, I would be happy to give you my thoughts on how the StarCruiser attraction could be adjusted to eliminate expense that combined would increase the demand and lower operating costs. Needs a separate thread. I don't think they have started to demolish the attraction yet so there is still time. ( I can be accused of thinking like this is a small company where a good idea can come along and change at the last minute)

As for Disney+ financials, I can't see a way out of it but then I'm not familiar with what those costs are. For me it's all about the content, both quality and quantity. I just finished Ahsoka and thought the story was good but the ending left us hanging. Seems like they just decided to stop with Episode 8 and not complete everything with some sort of closure. I won't discuss details as it would be spoiler. Anyway, I enjoyed the series except the ending. I was disappointed in Rosario Dawson's acting. Seems her passion was not into the role as the key character.

 

[ncted]

Wasn't meant to be insulting, just an observation on how defensive you were regarding my cancellation of Disney+.

Since you are in accounting, I would be happy to give you my thoughts on how the StarCruiser attraction could be adjusted to eliminate expense that combined would increase the demand and lower operating costs. Needs a separate thread. I don't think they have started to demolish the attraction yet so there is still time. ( I can be accused of thinking like this is a small company where a good idea can come along and change at the last minute)

As for Disney+ financials, I can't see a way out of it but then I'm not familiar with what those costs are. For me it's all about the content, both quality and quantity. I just finished Ahsoka and thought the story was good but the ending left us hanging. Seems like they just decided to stop with Episode 8 and not complete everything with some sort of closure. I won't discuss details as it would be spoiler. Anyway, I enjoyed the series except the ending. I was disappointed in Rosario Dawson's acting. Seems her passion was not into the role as the key character.

It was disappointing that the title character was so blah, especially compared to the animated performance. I didn't care if the lightsaber fights weren't up to the standard of the movies as they are all old hat now anyway, but the acting by Dawson wasn't what I hoped for. Most of the other characters were great though. The cliffhanger didn't bother me, assuming they do another season.

 

[Bruce]

Since you are in accounting, I would be happy to give you my thoughts on how the StarCruiser attraction could be adjusted to eliminate expense that combined would increase the demand and lower operating costs.

Not what I deal with, strictly Televison/Streaming.

 

[TheForce]

I posted an update and comments on the Starcruiser in the Pub. It may not be dead yet...

 

[ncted]

Is Disney Ready To Pay Comcast Over $9 Billion For Hulu?

Nine is the magic number, though Hulu may be worth more. Disney and Comcast have both hired investment banks to determine the equity fair value of Hulu.

www.forbes.com

 

[meStevo]

Looks like they're about to sell off the India business.


View: https://www.threads.net/@stocktwits/post/Cyvr0f9rdrj

 

[savarese04]

Looking at the reconstituted financials last week, India was a pretty heavy cash drain. Probably for the best.

 

[meStevo]

Looking at the reconstituted financials last week, India was a pretty heavy cash drain. Probably for the best.

Yeah, it's been a disproportionate source of much of their bad press (like sub losses)

 

[Bruce]

Looks like they're about to sell off the India business.


View: https://www.threads.net/@stocktwits/post/Cyvr0f9rdrj

Selling that is part of their plan to profitability in September 2024.

 

[SamCdbs]

Ahh, so you sell off assets and become profitable by no longer owning assets.

Got it.
--
Disney is taking a page out of the Ford playbook. If you remember, Ford, just as poorly managed as GM or Chrysler (or Disney, well, that is unfair to Ford, no company is as mismanaged as Disney) avoided bankruptcy be selling off assets. Jaguar, Ford Tractors, Ford large trucks, Ford construction equipment, etc.) Raised cash and let the mis-managers avoid their fate.

Selling the seed corn to raise cash is desperation, of course. But easier than admitting you don't know what you are doing. After all, you got into streaming.

 

[klang]

WSJ reporting Disney to pay Comcast over 8 Billion for Hulu.

Disney to Pay Comcast’s NBCUniversal at Least $8.61 Billion for Its Stake in Hulu

That can't be good for the Disney bottom line.

 

[ncted]

WSJ reporting Disney to pay Comcast over 8 Billion for Hulu.

Disney to Pay Comcast’s NBCUniversal at Least $8.61 Billion for Its Stake in Hulu

That can't be good for the Disney bottom line.

I don't 100% understand the play by Disney here. It will be interesting to follow as they try to figure out how to keep a profitable service (Hulu) profitable without NBCU content while trying to make Disney+ profitable. Just combining the services doesn't seem likely to accomplish that.

 

[KAB]

I don't 100% understand the play by Disney here. It will be interesting to follow as they try to figure out how to keep a profitable service (Hulu) profitable without NBCU content while trying to make Disney+ profitable. Just combining the services doesn't seem likely to accomplish that.

NBCU has already moved most of it's content to Peacock. Little wonder that they exercised their option out.

 

[Bruce]

NBCU has already moved most of it's content to Peacock.

For more then a year now.

But they now have the content from former Fox Cable Channels next day ( used to be a while after the season/Series was done) and the content from Fox Network next day ( which Disney mostly owns now).

Hulu Live also, but it has been losing subscribers the last three quarters now.

 

[SamCdbs]

I don't 100% understand the play by Disney here.

Figuring out Disney management is easy. Just think of the dumbest possible move, and that is what they will do.

Hulu's content simply costs more to make than there are people who wish to purchase it. And most of Hulu's content is, either reruns, or content that is already available in other ways (including for free via an antenna). In other words, paying twice for the same stuff. It is, in many ways, a preview of the vast wasteland of reruns and garbage shows that is the future of TV.

So Disney paid billions for it.

Typical Disney.

 

[savarese04]

I don't 100% understand the play by Disney here. It will be interesting to follow as they try to figure out how to keep a profitable service (Hulu) profitable without NBCU content while trying to make Disney+ profitable. Just combining the services doesn't seem likely to accomplish that.

To be honest, everyone being critical about this is missing the point ....there was no play here. This was a put/call arrangement and Disney could have said "no we don't want this" to anyone that would listen, but still be on the hook. NBCU was going to execute their end and force Disney into a corner.

Disney actually did the best thing they could by moving the arrangement to a sooner date. They know NBCU needs the cash and there's a really good chance that Hulu will only increase in value. If you're taking the hit, take advantage of your opponent's weakness and try to minimize that hit.