### Walt Disney Company's Growth Strategy and Future Prospects

The Walt Disney Company is poised for growth through strategic investments in streaming and quality content.

### Walt Disney Company's Strategic Investments and Future Growth Outlook
* 📈 The Walt Disney Company is projecting earnings growth with **double-digit profit increases** for 2026 and 2027, driven by significant investments in **streaming and experiences** like parks and cruises.
* 🎥 The success of recent billion-dollar movies and a strong slate for 2025 reflects a **renewed focus on creativity and quality**, which has positively impacted both the film and television divisions.
* 💡 "Streaming is certainly very much a **scaled business**," and Disney's combination of **strong intellectual property and product improvements** positions it well for **continued subscriber growth and profitability**.
* 🔒 The company is also addressing password sharing, anticipating a **gradual positive impact on subscriber numbers over time**.
* 🎬 The focus on **quality over quantity** in content creation, initiated by Bob Iger's return, has led to exceptional performances in films and television, with expectations for future hits like **"Mufasa"** and **"Lilo and Stitch."**
* 🏰 Confidence in the parks business remains strong, with growth in **domestic attendance** and upcoming investments, such as the addition of a **new cruise ship**.
* 💼 While monitoring economic policy changes, the company is currently not factoring in any **significant shifts in tax rates or fiscal support**, maintaining a **steady outlook**.
* 🎮 Disney's partnership with Epic Games aims to create a **Disney universe within Fortnite**, with expected returns from this investment materializing over the **coming years** as products are developed.

Disney CFO Says Movies and Streaming Are Booming

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Bloomberg Technology

Confidence in Disney's future growth and profitability

Visibility for earnings growth until 2027, with double-digit profit increases projected for 2026 and 2027.

Major investments in streaming and experiences (parks, cruises).

Successful pivot marked by back-to-back billion-dollar movies and a strong 2025 slate.

Good financial visibility into the returns on investments.

Confidence in delivering expected returns to investors.

Disney's streaming profitability and strategy

Industry-wide factors and Disney's specific actions contribute to streaming profitability.

Strong IP, product improvements, and a new product leader contribute to future streaming success.

High incremental value of additional subscribers due to low incremental cost.

Optimism about subscriber growth, pricing increases, and cost management.

Curbing password sharing will have a positive, gradual impact on subscribers.

The evolution of Disney's film studio and content strategy

Initial focus on quantity over quality in streaming's early years.

Shift to prioritizing quality over quantity, restoring creativity to the company's core.

Impact of quality focus seen in 2024's successful movies and TV shows (60 Emmys).

Optimism for future movie releases (Lion King, Lilo & Stitch, Avatar, Captain America).

Disney's approach to the ESPN direct-to-consumer (DTC) launch

ESPN DTC launch as a true digital experience, not just a content migration.

Interactive features: e-commerce, fantasy tracking, personalized broadcasts, online betting.

Meeting consumers where they are, whether traditional cable or digital networks.

Focus on high-quality content as a key driver of success.

Addressing revenue declines in the linear TV business

Viewing linear and streaming as two sides of the same coin, a natural hedge.

Streaming profitability offsets linear decline.

Outlook for Disney's parks business in 2025

Positive outlook driven by investments and expected returns, including a new cruise ship.

Domestic parks business growth in Q4 2024, driven by pricing and guest spending.

Expectation of continued attendance growth due to park improvements.

Consumer strength in streaming mirroring expectations for parks.

Modeling economic policy changes and M&A strategy

Current models assume no significant changes in tax rates or fiscal support.

It's too early to model potential impacts of upcoming US election.

Current media portfolio is strong, with past acquisitions (Fox) already creating significant value.

Disney's investment in Epic Games and the video game market

Investment in Epic Games aims to build a Disney universe within Epic's platforms (Fortnite).

Significant returns expected as products develop; this is a longer-term investment.

Video games are important for younger demographics, making Epic a valuable partner.

Building great products to bring Disney to audiences in a new way.