Disney FY 3Q16 Earnings Call Notes

The Walt Disney (DIS) Robert A. Iger on Q3 2016 Results

The multichannel bundle delivers the most value to customers but there are new platforms

“The multichannel bundle delivers the most value to us and remains a great value proposition to consumers. Therefore, our top priority is to support it and to do what we can to maintain or enhance its value to customers. We also know that new platforms and new entrance in the digital video space are offering consumers more flexibility in variety with exciting new products and impressive user experiences. And we must create or take advantage of these new opportunities in ways that are complementary to the multichannel offering.”

Invested in BAM to scale streaming capabilities at ESPN

“With that in mind, earlier today, we announced a significant investment that provides us the technology infrastructure to quickly scale and monetize our streaming capabilities at ESPN and across our entire company. We’re acquiring a 33% stake in BAM Tech, the industry leader in video streaming, data analytics and commerce management. We have the option to acquire majority ownership in the future, and through this investment, we plan to launch a new direct-to-consumer ESPN-branded, multi-sports subscription streaming service.”

Starting production on Episode IX

“We’ve also just finished filming Star Wars: Episode VIII, we’ve begun production on Episode IX and work on two more stand-alone movies is well underway. This kind of great storytelling will always be our first priority, but bringing great stories to consumers in innovative ways is a very close second. ”

Sling is so skinny you can’t even see it

“That new Sling product is pretty skinny. I was going to say so skinny you can’t even see it. But I mentioned earlier on the call that a few new products have entered the marketplace without us, namely without ESPN. Sony was one. And had real troubles getting off the ground. And in Sony’s case, when ESPN was added they had a significant uptick in their subs. So I don’t want to suggest that Sling has to have ESPN. They’ll determine that. But as we look at the product that they’re offering, we really don’t believe that it’s going to have – it has a great future, because it’s lacking some of the most attractive channels that are out there. “