Disney FY 2Q16 Earnings Call Notes

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Robert A. Iger – Chairman & Chief Executive Officer

2016 box office already at $3B globally

: This weekend, our 2016 box office total crossed $1 billion domestically, $2 billion internationally and $3 billion globally, reaching those milestones faster than any studio in history. Zootopia’s fantastic performance is just the latest in a string of incredibly successful original movies from our Animation Studios, including Inside Out, Big Hero 6 and Frozen, to name a few.”

iconic attractions reimagined for Shanghai Disneyland

“We set out to build something truly extraordinary and we’ve succeeded in a way that far exceeds our most ambitious expectations. We’ve re-imagined everything. Even our most familiar iconic attractions have been elevated and transformed with the help of cutting edge technology that allows us to take our creativity farther.”

Sorry about what happened with expected CEO replacement but no more to say

“ Tom was a valued colleague and a friend of mine and many others at the company. And so we’re sorry what came to pass, but we don’t really have much more to say about that. I will say that – or remind people that I have just over two years left on my contract as CEO of the company. And the board is very actively engaged in a succession process as it has been actually for some time.”

Wouldn’t be any problem with us going into the distribution business

“there are a number of our current distribution partners that are in the content ownership, content creation business, most notably Comcast and its purchase of NBCUniversal. So, we don’t think that there’s any negative impact whatsoever to us, going into the business of distributing our channels.”

See a very robust upfront

“ We see a very robust marketplace and a very strong upfront ahead, both for our broadcast network for ABC, and for ESPN. We’re very encouraged with what we see, but we’re not going to disclose what our strategy is going in.”

Never seen a better market to sell content into than SVOD

“I don’t think I’ll comment much about what we’re doing on the SVOD space. This is still a very dynamic marketplace and we continue to look for opportunities to sell our content. I will say that we’ve never seen a better marketplace to sell intellectual property into. And the strategy that we deployed a while ago to invest in the creation of intellectual property is one that we believe in even more today, and we’re going to continue to invest more in creating intellectual property.”

Kind of surprised that no one has asked a question about studio

“I want to add one thing. I’m actually kind of surprised that after almost 45 minutes of questioning, we didn’t get one question about our Studio. But I just want to reiterate that the Studio’s results were up tremendously in the quarter and up over 60% for the first two quarters of the year. They’ve had three movies in the marketplace, just recently, Zootopia, which is well over $900 million worldwide; Jungle Book, which is well over $700 million worldwide and climbing; and then Captain America, which had one of the best openings any movie has had in the history of the business. “