The streaming focus is interesting
because actually they warned that in that fiscal first quarter of the next
year might taper off a bit. But I don't think I've ever seen have
you ever seen Disney say for the next three years we'll see earnings growth
and this is how we feel about the

streaming business in particular?
Yeah, I mean, I think this is a major inflection point for Disney.
It's an incredible value for investors at this price, literally trading at half
the value of Netflix. But with all these other businesses in
sports and and in

experiences.
So, you know, their streaming businesses grew like crazy during the pandemic, but
they were spending so much money, it made no sense.
And now they've gotten this right. And as they move forward with aggressive
pricing, actually and incredibly good

content, people are not canceling.
They're Disney and they're not canceling their Netflix.
But we've seen a lot of churn in the other streamers.
So what we've really seen is what we hoped, which is Disney and Netflix have
come out as the winners in streaming.

Carey.
Also a really interesting question about password sharing.
You know, we got that wrong with Netflix.
You know, didn't seem to impact Netflix negatively necessarily.
Do you just see Disney following the same arc?
You know, Johnson kind of leans on this

idea that they've not been at it very
long in the streaming game, but they have grown quickly.
Right. I mean, they grew much quicker than
anybody would have guessed because of the pandemic.
And they really just were not good at

managing the cost side of the business.
And they were making tons of content that they weren't releasing in theaters
that was costing a fortune and now getting the model right, like Moana to
like I was watching Deadpool last night, Deadpool and Wolverine goes out in the
theaters.

That makes $1,000,000,000.
Then it goes on the streamer. Everybody wants to watch the streamer and
that's what we're going to see with my one and two coming.
And then we have Mustafa, which is Lion

King two coming in December.
And boy, this is going to drive, you know, not only keeping the people from
turning on the streamer, but adding new subscribers who really just want to
watch the movie, you know, and not have

to pay for all a part.
You know what's interesting, Ross, is that Hugh in particular tried to
articulate this vision that, yes, TV, cable is showing weakness, but it
basically feeds the beast of streaming and stop looking at it separately.
But there's also this element going

forward that they've got to do something
to change revenue, operating profit in the different direction and start
showing stabilization or at least growth once again.
And that sort of can be said more broadly when you're thinking of venue
back on ice, when you think of venue

sports, the joint venture they were
going to be doing with Fox and Warner Brothers, there are some stop starts
here. Well, yeah.
And see, part of it is ESPN has this limitation because it's still, you know,
tethered to cable for another year.

And once that is done and you can
actually get ESPN as a standalone app with real ESPN content without actually
a cable subscription that will open up opportunities for ESPN.
They've just been unable to open. But the cable issue is one that will
continue to be a problem for some time.

And, you know, some cable companies get
it like Spectrum, where they've pivoted in the business and tried to create
value for cable subscribers. But like mostly young people today don't
even know what cable is. So, you know, we're going.
So feeding the beast of streaming is the

appropriate strategy.
And young people today will sign up for multiple streamers and pay the money.
And it's still cheaper than cable from the old days.
But, you know, Netflix and Disney have the opportunity to really engage a
global audience that has, you know,

potentially as many as 500 million,
maybe a billion subscribers total in the total market globally that they can grow
to. Let's just look at that valuation.
You talked about how basically Disney is half a Netflix.
We are when you're looking at forward

estimate like price to earnings of 42 on
Netflix. They're never going to trade at that
valuation if they are using a hedge of experiences using a hedge of older
consumers with cable. Well, it's a much clunkier, capital
intensive business than Netflix, hence

the higher P/E multiple.
But I'm also just talking about pure market cap, you know, so the valuation
that the premium valuation Netflix gets is certainly deserved.
But what we're saying is that Disney is really trading at a discount on all
levels in the marketplace today.

I mean, it's cheaper than the S&P.
PE when you look at forward, and then you start thinking, wait, now this
business is really growing at a double digit going into the fairly decent
mid-term. And, you know, once again, experiences
is a wonderful business just because it

grew crazily in 21 and 22 as everybody
came back out of the pandemic. And now it's slowed.
Doesn't mean it's not going to continue to gain steam as we move into 25 and 26
with new cruise ship launches, which

might cost Disney on the short term as
they launch the new cruise ship. But over time, these cruises are like
gold mines. I mean, so Disney is a cash cow.
They're returning money to shareholders, are extremely shareholder friendly
company.

And, you know, the big question is
succession planning. And once they clear that up, then, you
know, Disney has a great runway over the next five years.

Disney Finally Got It Right, Says Analyst Gerber

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