logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

Disney Has a Plan Star Wars, Marvel, Pixar Fans Will Love

The Mouse House plans to spend big in ways customers likely will be really happy about (and Netflix and Universal Studios won’t).

Walt Disney (DIS) sits at or near the top of the streaming, broadcast, film, and theme-park industries despite heavy competition.

The Mouse House does battle with any company that produces content or tries to entertain people. But arguably its two biggest rivals are Netflix (NFLX) , its opponent for streaming dominance, and Comcast (CMCSA) , which holds Universal, Disney’s only real competitor for theatrical releases and in the streaming space.

Of course, other film studios and broadcast networks fight Disney for things like sports rights. But in fact Netflix and Comcast’s Universal stand above all others — Netflix largely because it has first-mover advantage and Comcast because it’s the only company that has intellectual property rivaling Disney’s.

Competition is relative as Disney stands at the top of the IP world. But Comcast does have big franchises including “Fast & Furious,” “Jurassic Park,” “Minions,” “Shrek,” “Secret Life of Pets,” and its classic monster movies. That’s not “Star Wars,” Pixar, and Marvel, but it’s a close enough No. 2 to at least challenge Disney on release dates.

Now, Disney has a big plan to catch up to Netflix and keep its box-office crown over Universal. That plan involves spending an awful lot of money.

Disney’s Content Budget Is Huge

Netflix plans to spend about $17 billion on content in 2022. That’s down from past estimates of $20 billion. During the company’s second-quarter earnings call, Chief Financial Officer Spencer Neumann noted that about 60% of that budget goes to original content, with the rest going to licensing.

“We are expecting to spend about $17 billion this year, and we are in the right Zip Code,” he said, according to a Deadline story. “We have come through a pretty big business transition. We have gotten smarter in how we can direct our spend for greatest impact.”

That’s a huge number, given that Netflix does not produce films for theatrical release.

Disney, however, plans to spend more than half again that figure across all its content platforms.

“Cash content spend across the company is now expected to total approximately $30 billion for fiscal 2022,” Disney Chief Financial Officer Christine McCarthy said during the second-quarter-earnings call.

“This estimate is slightly lower than our previous guidance, largely due to timing changes. And we expect annual cash content spend over the next couple of years to be roughly in the low $30 billion range as well.”

That’s a lot of films, Disney+ shows, and content for Disney’s other platforms. The big budget, however, comes with far fewer risks per dollar spent than its rivals face.

Disney Doubles Down on What Works

Comcast has a few guaranteed hit franchises — but not enough of them to power a full box-office slate or to make its Peacock streaming service a hit.

That has forced the company to continue to make movies that might not be hits while spending big to supplement its streaming service with WWE (WWE) archival programming and special events as well as risky sports bets like the Olympics.

Netflix has almost no valuable IP outside of “Stranger Things.” Its biggest hits have been shows that don’t readily lead to “universes” or even sequels. That puts both companies at a major disadvantage to Disney, which can simply build off what already works.

It’s a strategy that works to keep fans of its franchises engaged and to bring new ones in, according to CEO Bob Chapek.

As you know, Disney+ is still a young business and it is learning more every day about the service’s ability to attract new fans to their powerhouse franchises. For example, in addition to driving engagement among tens of millions of existing Marvel fans, we have seen each new Disney+ original Marvel series attract incremental viewership and new subscribers that hadn’t previously engaged with Marvel content on the service, thanks to the episodic format that enables us to explore new characters and genres. The value of expanding the fan base is tremendous, and this new audience can then experience Marvel across our other offerings from consumer products to games to theme parks.

Disney’s content doesn’t just drive its broadcast platforms; it brings customers to theme parks and other parts of the business. That’s a model Comcast/Universal could follow to an extent, but mostly it lacks the content to do that and Netflix doesn’t have those other businesses.

Yes, Disney has a big budget, but it also gets more for its money than its rivals and that should help the company gain on Netflix while building its lead over Comcast/Universal.

Related posts

February 1, 2023

Bitcoin closes out best January since 2013


Read more

Categories

  • Business
  • Content
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • Bitcoin closes out best January since 2013
  • More oil is coming
  • Samsung to keep up chip investment, undeterred by 8-year-low profit
  • TikTok faces a daunting calendar ahead in Washington
  • Think Chevron’s Profit Was Obscene? 5 Companies Will Blow It Away

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company