And that is a wrap.  Stay tuned to us for ongoing coverage of all the Disney news and information.

Regarding distribution, Chapek says they have been encouraged by their polling on people's willingness to return to movie theaters.

Demand at Walt Disney World is back to 2019 levels.

Bob Chapek says we should expect capacity to increase significantly in short order.

Bob Chapek says the loosening of the mask mandate means that people will be a lot more comfortable this summer.

Bob Chapek says the flexibility to pivot to move content to ESPN+ is critical.

This quarter's numbers of Disney+ subscribers is in line with their internal projections.

On Disney+ subscribers not growing as fast as the street expected, Bob Chapek says that their outlook on subscribers has not changed.

That is the end of the call, but we will be standing by to continue our coverage with Bob Chapek's interview on CNBC which should be happening shortly

Bob Chapek says they have not announced what their release strategy will be beyond this year.  They will continue to monitor the marketplace.

Bob says theatrical is a great way to build franchises, but The Mandalorian merchandise sales have been succesful as well.

Disney will walk into gambling carefully.

Going forward Disney sees sports gambling as an opportunity going forward with little risk

Disney is in conversations with the NFL regarding Sunday Ticket

Disney plans to be aggressive in simulcasting NFL games on ESPN+

This will allow them to increase yields and per capita spending while improving the guest experience.

Regarding if the parks can be more profitable after COVID than it was before. He discusses the sunsetting of the Annual Pass program at Disneyland and transforming it into a new loyalty program.

80% of cast members that they have asked to return, have returned

An analyst that doesn't understand how theme parks works says that the parks already seem full without realizing that the queues are spaced out.

Hulu is seeing revenue growth from addressable advertising.

Disney+ has seen growth at both new and mature markets.

Bob Chapek says you should see an immediate increase in the guests they can admit

Bob Chapek says that the news that vaccinated people don't need to wear masks indoors and outdoors is big news

Disney has already started increasing capacity at the parks.

Disney+ will launch in Malaysia on June 1 and Thailand on June 30

4 elements drive Disney+ growth. 1) content slate 2)general entertainment international growth (Star) 3) market expansion 4)Growing the Disney bundle

After the price increase, Disney has not seen a change in churn rate in the US and has seen a reduction in Europe.

Disney stock is down about 6 points after hours

The launch of Star in Latin America has been moved to August from June to take advantage of a strong sports calendar

Q&A time

Forward looking bookings at both Disneyland and Walt Disney World are strong

At Walt Disney World, attendance and spending trends, continue to approve.

If you exclude Disney+Hotstar, Disney+'s revenue per user was $5.61. 

The COVID situation in India, and its impact on Cricket, will affect the performance of Disney+Hotstar

ESPN also gains access to the entire Wild Card series in 2022 if the event expands. If the current format remains, ESPN will broadcast one of the two games and will get 8 additional regular season games.

ESPN+ will continue to show a game on nearly every day of the season and will be adding studio and highlight programming.

All of their games will be exclusive though.

There will be a lot less baseball on ESPN, going down to 30 regular-season games.

The MLB deal has an option to stream games on ESPN+

ESPN has also signed a deal with the Spanish soccer league La Liga for an 8 year deal.

ESPN has renewed a deal with MLB

For reference, the traditional theatrical window has been 90 days

Free Guy will release in theaters on August 13 and Shang-Chi on September 3

Free Guy and Shang-Chi will be released theatrically exclusively for 45 days.

Disney will continue to do films directly to Disney+, in theaters exclusively, and theaters and premier access.

20th Century and Searchlight Pictures will be upping their production to fuel all of Disney's distribution platforms.

Disney is nearing full production levels at the studios

They hope to announce a reopening date for Disneyland Paris soon.

Shanghai Disneyland is performing above 2019 levels.

They are seeing strong and growing demand at Disneyland and Walt Disney World.

Their focuses are in three key areas. 1) Direct-to-Consumer 2) The reopening of theaters 3) Recovery of Parks and Cruise Line 

Bob starts by saying they are seeing signs of recovery across the company.

The call is beginning.

For those wondering, the hold music is from "The Falcon and the Winter Solider"

In the first six months of the fiscal year, Disney's investment in the parks was over $1 billion.

Disney estimates that COVID-19 impacted the parks business by $1.2 billion in the quarter.

Disney Parks, Experiences, and Products lost 406 million in the quarter.

Bob Chapek: “We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company. This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”

Apparently the Disney+ subscriber level is less than many on Wall Street expected.

Disney+ now has 103.6 million subscribers.

Since earnings beat, but revenue missed, it is clear that Wall Street doesn't understand what happened.

Earnings per share were $.79 vs $.31 expected

Walt Disney Company revenues missed expectations with $15.6 billion

$DIS is down in after hours so far

Ahead of earnings, Disney stock ended their day up .14 to 178.10

Good afternoon! Today's earnings report should be released around 1 p.m. PT followed by a conference call at 1:30 p.m. PT. Stay tuned!