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5/18/2022 10:38 AM Pacific Time

The session has begun

5/18/2022 11:01 AM Pacific Time

Today's event is being held in person 

5/18/2022 11:01 AM Pacific Time

In addition to Disney CFO Christie McCarthy, Disney's head of ad sales Rita Ferro is participating as well.

5/18/2022 11:02 AM Pacific Time

Just yesterday, Rita led Disney's upfront presentation for advertisers showing some of the upcoming content coming to ABC, Disney+, ESPN, and more.

5/18/2022 11:03 AM Pacific Time

McCarthy is clarifying some comments made during the earnings call.  Previously they said that the expected to have more subscribers in the second half of 2022, but their performance in first half exceeded expectations.

5/18/2022 11:05 AM Pacific Time

Disney tried to say that they would not be as weighted to the second half as they had thought. Many interpretted it as that they expected growth to slow down in the second half, but that is not what they meant.

5/18/2022 11:06 AM Pacific Time

They are also clarifying that it was always the plan that ESPN would eventually be offered to direct-to-consumer. When that happens is still up in the air.

5/18/2022 11:07 AM Pacific Time

Regarding shifting rights from linear to direct-to-consumer, Christine says that it would be a different product. ESPN+ is intended to be a supplemental product. The price of ESPN+ would not support ESPN's exisiting offering.

5/18/2022 11:09 AM Pacific Time

Regarding capital allocation (where they spend their money), she says they will continue both investing in the parks and in filmed content

5/18/2022 11:11 AM Pacific Time

Outside of investment, they are focused on reducing their debt to bring their balance sheet back to typical Disney levels.

5/18/2022 11:12 AM Pacific Time

They will also be prioritizing dividends but further out is share repurchase.

5/18/2022 11:12 AM Pacific Time

Disney has launched Disney Ad Server which integrates all of Disney's ad operation.

5/18/2022 11:16 AM Pacific Time

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There is big ad growth in small and local business.

5/18/2022 11:18 AM Pacific Time

Advertisers are buying ads on both linear channels where they reach everyone and addressible options such as streaming which allows them to be more specific targeting.

5/18/2022 11:20 AM Pacific Time

Disney has doubled the revenue at Hulu advertising since they took control.

5/18/2022 11:22 AM Pacific Time

Disney+ will have less advertising than Hulu.

5/18/2022 11:23 AM Pacific Time

According to recent reports, Disney+ will have 4 minutes of ads per hour or less 

 

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There will be less than 4 minutes of ads per hour on Disney+

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There will be no ads on preschool content on Disney+ at launch.

5/18/2022 11:26 AM Pacific Time

Disney says 40% of Disney+ viewers are BIPOC

5/18/2022 11:26 AM Pacific Time

53% of Disney+ subscribers are cordless.

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62% of adult viewers are Disney+ do not have kids in the home.

5/18/2022 11:27 AM Pacific Time

65% of Disney+ subscribers said movies were the top reason to subscribe.

5/18/2022 11:27 AM Pacific Time

There is a still demand for linear advertising. Packaged goods are advertising less while crypto and sports betting is up.

5/18/2022 11:31 AM Pacific Time

When asked why Disney is investing in general entertainment instead of focusing in just their popular brands. Christine says that what they are hearing from their subscribers that they want more general entertainment.

5/18/2022 11:33 AM Pacific Time

She continues saying that the strength of the company is all kinds of storytelling and that general entertainment will help retain and attract new subscribers.

5/18/2022 11:34 AM Pacific Time

She says "why wouldn't you have something like 'Only Murders in the Building' on Disney+?"

5/18/2022 11:34 AM Pacific Time

She says people want some things that are not branded. Can't help but wonder if they feel the same way about the theme parks.

5/18/2022 11:35 AM Pacific Time

She differentiates between adult-orientated content and general entertainment content. Dopesick and Pam & Tommy would be the former while Only Murders might be the latter

5/18/2022 11:36 AM Pacific Time

When asked about why they invest in local content in other country. She says they learned from the Disney Channel days that people want content created for their culture and not just stuff made for the global or US audience.

5/18/2022 11:36 AM Pacific Time

McCarthy says there are three things about the theme park experience that are not appreciated. The first is the cast members.

5/18/2022 11:37 AM Pacific Time

Regarding the cast, she says that when you are at the park and encounter CMs, you wonder "what do they feed this people."

5/18/2022 11:38 AM Pacific Time

The second item is the Galactic Starcruiser and how creative and unique the experience is.

5/18/2022 11:39 AM Pacific Time

The third thing is relevance. She says the park continues to evolve.  It is almost like she thinks that they will never be completed as long as their is imagination left in the world.

5/18/2022 11:39 AM Pacific Time

To sum up, the three things she thinks are underappreciated about the Disney theme parks are cast, creativity, and relevancy

5/18/2022 11:40 AM Pacific Time

Disney's theme parks per cap (how much each guest spends), are way up compared to 2019.

5/18/2022 11:41 AM Pacific Time

McCarthy says one thing they have learned is that "all movies are not created equally," in regards to theatrical appeal.

5/18/2022 11:42 AM Pacific Time

She says action, adventure, and superhero films are driving guests to theaters.

5/18/2022 11:43 AM Pacific Time

She says that an adult drama is not as appealing to theatrical because the big screen and big sound are not as necessary.

5/18/2022 11:43 AM Pacific Time

While theatrical builds franchise excitement through the communal experience, she says they learned that they can build a franchise through streaming due to The Mandalorian. 

5/18/2022 11:44 AM Pacific Time

Editors Note: I don't know that I would consider The Mandalorian as its own franchise.

5/18/2022 11:44 AM Pacific Time

And that's a wrap.

5/18/2022 11:47 AM Pacific Time