The Walt Disney (DIS) Q2 2017

posted in: Earnings Call, Notes | 0

Robert A. Iger – The Walt Disney Co.

The studio is doing well

“Our Studio’s extraordinary run continues. In fiscal 2017, we’ve already had two releases that topped $1 billion in global box office: Rogue One and Beauty and the Beast. With a strong opening weekend, Marvel’s Guardians of the Galaxy Volume 2 just became the 15th consecutive Marvel movie to open at number one. It’s already delivered $156 million in U.S. box office, bringing the worldwide total to $456 million to date…we have an incredibly robust slate of great Marvel movies ahead with four releases in the next 14 months alone”

ESPN primetime audience increased

“Almost 80% of the people who connect with ESPN each month access the content on mobile devices. In Q2, ESPN’s suite of mobile apps reached a monthly audience of almost 23 million unique users who collectively spent more than 5.2 billion minutes engaging with ESPN on those platforms during the quarter. Mobile is clearly going to play a major role in the future of media…..ESPN’s primetime audience in fiscal Q2 was up 15% year-over-year, and the inclusion of out-of-home viewing and WatchESPN lifted that audience by another 10%. ESPN also delivered its largest first quarter primetime audience in five years according to Nielsen, which reports on a calendar basis.”

On cord cutting

“…give us a little bit of credit for being very candid with all of you on an earnings call two summers ago when we talked about sub losses in the expanded basic bundle. We did that because, one, we wanted to be candid; and two, we wanted to signal that we had our eyes wide open about what was going on and we fully intended to address what we were seeing and what we’ve continued to see…Those losses have come from cord-nevers, cord-cutters and what had been a migration to lighter packages on those platforms that did not include ESPN. It has been a blend, and it’s been fairly steady”

The future is buying what you want

“So while I think it’s possible that there’ll be an omnibus sports – multiple sports package offered direct-to-consumer, it’s more likely that consumers will have an opportunity to buy the sports they want when they want it as well.”