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Sooo... Disney reported earnings yesterday. There's only one logical conclusion to reach.
Disney will take over the world unless somebody does something to stop them.
We covered Disney's business model last year 👇
Tim Vollans
And the last quarter of 2021 was a stormer.
- Earnings per share: $1.06 adj. vs 63 cents expected
- Revenue: $21.82 billion vs $20.91 billion expected
- Disney+ total subscriptions: 129.8 million vs 125.75 million expected
Only last month, slowing subscriber growth saw Netflix brutally punished by the market, before Ackman bought the dip.
No such problems for Disney, adding 11.8 million Disney+ subscribers in the quarter, alongside an increased ARPU (Average Revenue Per User) from $5.80 in Q4 2020 to $6.68 per month in Q4 2021.
Internationally that figure increased from $4.73 to $5.96.
CEO Chapek is aiming for 230 to 260 million subscribers by 2024...
But that won't just be from family flicks and series, or avengers and star wars films.
Nope, Disney Sports is where it's at. Except they don't call it that. It's ESPN.
Anyway, Chapek had this to say:
“Sporting events continue to be the most powerful draw in television, accounting for 95 of the 100 most-watched live broadcasts in 2021.
And ESPN once again set the bar this quarter with live games across each of our four major US sports, including the revolutionary Monday Night with Peyton and Eli,”
They're bidding for the NFL Sunday Ticket to add to their sports coverage, and it seems unlikely to end there 👇
“While multi-platform television and streaming will continue to be the foundation of sports coverage for the immediate future, we believe the opportunity for The Walt Disney Company goes well beyond these channels”
“It extends to sports betting, gaming, and the Metaverse.
In fact, that’s what excites us: the opportunity to build a sports machine akin to our franchise flywheel that enables audiences to experience, connect with and become actively engaged with their favorite sporting events, stories, teams, and players.”
Dig into the details here 👇
Sports betting, gaming and the metaverse
At least two of those are absolutely monster addressable markets. And if the Metaverse does worm it's way into our everyday lives, who'd bet against virtual experiences with your favourite Disney characters?
Travel into space and live out repressed childhood Star Wars dreams, become an Avenger, the works.
Chapek is bullish on the futre for Disney:
“This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years.”
With a moat the size of theirs, I wouldn't bet against it. Netflix takeover by 2030?
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David Belle
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